MEASUREMENT OF EMPLOYEE COMMITMENT STRATEGIES WITHIN AN AUDITING ENVIRONMENT

by

ADRIANA W BOTHA

Submitted in partial fulfilment of the requirements for the degree

MAGISTER TECHNOLOGIAE: HUMAN RESOURCE MANAGEMENT

in the Department of People Management and Development FACULTY OF MANAGEMENT SCIENCES TSHWANE UNIVERSITY OF TECHNOLOGY

Supervisor: Mr Willie Pretorius Co-supervisor: Dr Karel Lessing

February 2008

DECLARATION

I hereby declare that this dissertation submitted for the degree Magister Technologiae: Human Resource Management, at Tshwane University of

Technology, is my own original unaided work and has not previously been submitted to any other institution of higher education. I further declare that all sources cited or quoted are indicated or acknowledged by means of a comprehensive list of references.

Adriana W Botha

Copyright Tshwane University of Technology 2007

ii

ACKNOWLEDGEMENT

I would like to express my sincere gratitude and appreciation to the following:

Tshwane University of Technology for enabling me to conduct the research; My supervisor, Mr Willie Pretorius, for his guidance and support throughout this project; Deloitte and Synovate Loyalty for allowing me access to their data and research; My husband, Rocher, for his encouragement and support; and HIM who ultimately made this possible.

iii

ABSTRACT

EMPLOYEE COMMITMENT STRATEGIES WITHIN AN AUDITING ENVIRONMENT

by

ADRIANA W BOTHA

SUPERVISOR: CO-SUPERVISOR: DEPARTMENT: DEGREE:

MR WILLIE PRETORIUS DR KAREL LESSING PEOPLE MANAGEMENT AND DEVELOPMENT MAGISTER TECHNOLOGIAE: HUMAN RESOURCE MANAGEMENT

The purpose of this research project is to understand the concept of employee (organisational) commitment through researching antecedents of employee commitment focusing on attitudinal aspects, behavioural influences, and consequences of commitment.

It can be argued that human resources strategies and management practices can be used to influence employee (organisational) commitment. Empirical research will determine whether the organisations directed action has the desirable effect of changing employees attitudes towards human resources and management

iv

practices and, therefore, ultimately increases employee commitment as motivated through the theoretical research.

The impact of the organisations directed actions on employee attitudes towards human resources strategies and management practices is determined by comparing employee commitment results of the Global People Commitment Survey for the year 2005 with the year 2006.

TABLE OF CONTENTS

DECLARATION ACKNOWLEDGEMENT ABSTRACT LIST OF TABLES LIST OF FIGURES

CHAPTER 1: INTRODUCTION ............................................................................... 1 1.1 1.2 1.2.1 1.2.2 1.3 1.4 PROBLEM STATEMENT .................................................................... 3 PURPOSE OF THE STUDY ............................................................... 4 Theoretical research............................................................................ 4 Empirical research............................................................................... 5 CHAPTER OUTLINE........................................................................... 6 CONCLUSION..................................................................................... 7

CHAPTER 2: EMPLOYEE ORGANISATIONAL COMMITMENT .......................... 8 2.1 2.2 2.3 2.3.1 2.3.1.1 2.3.1.2 2.3.1.3 2.3.2 INTRODUCTION ................................................................................. 8 DEFINING EMPLOYEE ORGANISATIONAL COMMITMENT ........... 8 ANTECEDENTS OF COMMITMENT.................................................. 9 Work-related attitudes .......................................................................10 Commitment as a work-related attitude ............................................12 Job satisfaction as a work-related attitude ........................................12 Job involvement as a work-related attitude.......................................13 Individual behavioural influences ......................................................15

vi

2.3.2.1 2.3.2.2 2.3.2.3 2.3.2.4 2.3.2.5 2.3.2.6 2.3.2.7 2.4 2.4.1 2.4.2 2.4.3 2.5

Attitude as an individual behavioural influence .................................16 Personality as an individual behavioural influence ...........................20 Values as an individual behavioural influence ..................................23 Expectancy as an individual behavioural influence...........................26 Motivation as an individual behavioural influence .............................30 Needs as an individual behavioural influence ...................................33 Perception as an individual behavioural influence ............................37 CONSEQUENCES OF COMMITMENT IN THE WORKPLACE.......41 Work turnover as a consequence of commitment.............................41 Absenteeism as a consequence of commitment ..............................43 Productivity as a consequence of commitment.................................45 SUMMARY ........................................................................................47

CHAPTER 3: HUMAN CAPITAL STRATEGIES TO PROMOTE COMMITMENT........................................................................................................48 3.1 3.2 3.3 INTRODUCTION ...............................................................................48 INFLUENCING COMMITMENT ........................................................48 MODELS AND DISCUSSIONS OF HUMAN RESOURCES STRATEGIES AND MANAGEMENT PRACTICES THAT INFLUENCE COMMITMENT ............................................................52 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 Effect of communication on commitment ..........................................53 Effect of leadership on commitment ..................................................58 Effect of organisational culture on commitment ................................62 Effect of recruitment on commitment.................................................68 Effect of development on commitment..............................................73

vii

3.3.6 3.3.7 3.4

Effect of performance management on commitment ........................77 Effect of reward (and recognition) on commitment ...........................81 SUMMARY ........................................................................................86

CHAPTER 4: METHOD OF RESEARCH..............................................................87 4.1 4.2 4.2.1 4.3 4.3.1 4.4 4.5 4.6 4.6.1 4.6.2 4.6.2.1 4.6.3 4.6.3.1 4.6.4 4.7 4.7.1 4.7.1.1 4.7.1.2 4.7.1.3 4.7.2 INTRODUCTION ...............................................................................87 RESEARCH DESIGN........................................................................87 A posteriori quasi-experimental design .............................................87 SURVEY RESEARCH.......................................................................88 Survey Research Process.................................................................89 ADMINISTERING THE QUESTIONNAIRE.......................................90 POPULATION AND SAMPLING .......................................................91 STATISTICAL METHODS.................................................................92 Data analysis .....................................................................................93 Descriptive Statistics .........................................................................93 Frequency tables and graphs............................................................94 Comparative statistics .......................................................................94 Chi-square test ..................................................................................95 Commitment index scores.................................................................95 THE QUESTIONNAIRE.....................................................................96 Synovate Loyalty model of employee commitment...........................96 Dimensions of commitment ...............................................................97 Perceived commitment of the organisation to stakeholders .............98 Human resources management process areas ................................99 Synovate Loyalty data analysis and reporting.................................100

viii

4.7.2.1 4.7.2.2 4.7.3 4.7.4 4.8 4.8.1 4.8.2 4.9

Vulnerability analysis .......................................................................101 Impact scores ..................................................................................101 Validity .............................................................................................102 Reliability testing..............................................................................102 RESEARCH APPROACH ...............................................................103 Directed actions after 2005 .............................................................103 Approach to measure directed actions............................................106 SUMMARY ......................................................................................108

CHAPTER 5: PRESENTATION OF RESULTS ..................................................109 5.1 5.2 INTRODUCTION .............................................................................109 DESCRIPTIVE STATISTICS FOR BIOGRAPHICAL VARIABLES.....................................................................................109 5.3 DESCRIPTIVE STATISTICS FOR VARIABLES UNDER INVESTIGATION.............................................................................112 5.4 5.5 5.5.1 5.5.2 5.5.3 5.6 5.7 COMPARATIVE STATISTICS ........................................................116 COMMITMENT INDEX SCORES ...................................................119 Overall commitment index scores ...................................................119 Less desirable commitment index scores under investigation........121 Comparison tables and chi-square statistics...................................122 DISCUSSION AND CONCLUSIONS ..............................................127 SUMMARY ......................................................................................129

CHAPTER 6: RESULTS AND RECOMMENDATIONS ......................................131 6.1 INTRODUCTION .............................................................................131

ix

6.2 6.2.1 6.2.2 6.3

FINDINGS OF THE STUDY............................................................132 Shortcomings of the research .........................................................133 Suggestions .....................................................................................137 CONCLUSION.................................................................................141

BIBLIOGRAPHY...................................................................................................144

ANNEXURE A.......................................................................................................155 Global People Commitment Survey ..................................................................155

ANNEXURE B.......................................................................................................167 Comparative statistics graphs...........................................................................167

LIST OF TABLES

TABLE 5.1: Biographical distribution..........................................................................110 TABLE 5.2: Variables under investigation .................................................................113 TABLE 5.3: Comparison statistics for criteria grouping...........................................117 TABLE 5.4: Overall commitment index scores .........................................................119 TABLE 5.5: Less desirable commitment index scores per question under investigation..............................................................................................121 TABLE 5.6: Chi-square comparisons .........................................................................124

xi

LIST OF FIGURES

FIGURE 2.1: FIGURE 2.2: FIGURE 2.3: FIGURE 2.4: FIGURE 2.5: FIGURE 2.6: FIGURE 2.7: FIGURE 2.8: FIGURE 3.1: FIGURE 3.2:

Three basic components of attitudes...........................................18 Some major forces influencing personality .................................23 Expectancy theory........................................................................28 Basic motivational process ..........................................................31 A graphic comparison of four content theories of motivation ......32 The motivation process: a general model...................................36 The perceptual process in individual interpretation ..................39 Factors that influence perception.................................................40 The communication process model .............................................55 The contribution of communication activities to real managers effectiveness ..............................................................57

FIGURE 3.3: FIGURE 3.4: FIGURE 3.5: FIGURE 3.6: FIGURE 3.7: FIGURE 3.8: FIGURE 3.9: FIGURE 3.10: FIGURE 4.1: FIGURE 4.2: FIGURE 4.3:

A framework for studying leadership ...........................................59 How cultures emerge ...................................................................65 The evolution of a positive culture ...............................................67 A systematic approach to recruitment and selection ...................72 Outcomes of employee development programmes.....................76 An integrated performance management cycle...........................79 Basic model of expectancy theory ...............................................81 Types and structure of rewards ...................................................84 Model of employee commitment ..................................................97 Directed actions after 2005 ........................................................104 Approach to measure directed actions ......................................107

xii

CHAPTER 1: INTRODUCTION

Understanding employee commitment as an employee attitude is important because it has an important effect on organisational performance, and this attitude can be influenced by human resources policies and practices (Rayton, 2006:139). The last decade, particular research interest in high-commitment models of human resources management depicted that a bundle of human resources practices focusing on employee commitment to the organisation ultimately would contribute to organisational effectiveness (Dorenbosch, De Reuver & Sanders, 2006:275). Despite the focus on, and consequences of, commitment, executives find it problematic to understand the concept of employee (organisational) commitment and how it can be influenced, measured, and managed (Crosby, 2000:2).

Ivancevich, Konopaske, and Matteson (2005:224) found that research evidence indicates that the absence of commitment can reduce organisational effectiveness. People who are committed are less likely to quit and accept other jobs. Hellriegel and Slocum (2004:54-55) explain that strong commitment is often correlated with high productivity and according to Bennett and Minty (2005:16-17) various research studies have indicated that promoting employee commitment increases employee retention and, in addition, makes a positive contribution to

organisational performance. Leather (2005:21) agrees that employee commitment led to improved business performance.

Commitment can be influenced by a variety of psychological and work-related variables such as individual behavioural influences, other work-related attitudes,

and human resources and management practices. Attempts to learn how require an understanding of the antecedents of commitment. Ashkanasy, Wilderom, and Peterson (2000:344) describe antecedents of commitment as intervening variables that channel the occurrence and strength of different commitments.

Greenberg and Baron (2003:146) argue that work-related attitudes include lasting feelings, beliefs, and behavioural tendencies toward various aspects of the job itself, the setting in which the work is conducted, and/or the people involved. Work-related attitude reflects in tendencies to respond. With this in mind, this study will also explore individual behavioural influences.

According to Ivancevich, Konopaske, and Matteson (2005:96), individual variables influences work behaviour. Individual variables combined with various

organisational variables (resources, leadership, reward, job design, and structure) will shape productive, non-productive, and counterproductive work behaviours. Our behaviour is shaped by our perceptions of why certain things happen. It is important to understand individual behavioural influences in order to shape employee behaviour and, consequently, influence commitment.

Most organisations attempt to shape employee behaviour through policies, procedures, and human resources management practices. Robbins (2005:538) explains that an organisations human resource policies and practices represent important forces for shaping employee behaviour and attitudes and according to Bowditch and Buono (2005:53), focussing on relevant employee behaviours and interactions, managers can begin to shape the outcomes they desire, such as

employee commitment.

However, Buchanan and Huczynski (2004:203) (citing

James March and Herbert Simon, 1995) argue that management cannot change individual behaviour directly, or by attempting to alter peoples personalities. It is more effective and practical, they observed, to manipulate the premises on which people make their own decision about how they will behave.

1.1

PROBLEM STATEMENT

While research has shown that employee (organisational) commitment can be influenced by human resources strategies and management practices, executives still find it difficult to influence, measure, and manage employee (organisational) commitment (Crosby, 2000:2).

Measuring employees attitudes towards human resources strategies and management practices will enable an organisation to direct specific actions towards less desired scores, which will result in a more committed workforce and, ultimately, contribute to organisational effectiveness. Comparing annual

commitment results will enable an organisation to measure the effectiveness of its directed actions in the change of employee attitudes towards the organisations human resources strategies and management practices.

Firstly, it is important to understand the concept of employee (organisational) commitment and the intervening variables that channel the occurrence and strength of commitment. Secondly, executives need to be aware of the Thirdly, it is important to understand how

consequences of commitment.

commitment can be influenced through human resources strategies and

management practices. Finally, one has to measure the impact of directed actions through the change in employees attitudes towards human resources strategies and management practices.

1.2

PURPOSE OF THE STUDY

The purpose of the study is to provide theoretical and empirical research on employee (organisational) commitment and to measure the impact of directed actions through the change in employees attitudes towards human resources strategies and management practices. Employee commitment results for the year 2005 will be compared to employee commitment results for the year 2006, using the Global People Commitment Survey, within an auditing company.

The organisation (auditing company) directed specific actions towards less desired commitment index scores in the hope of changing employees attitudes towards human resources strategies and management practices and, ultimately, increasing employee commitment.

1.2.1 Theoretical research The research will focus on the concept of employee (organisational) commitment through researching antecedents and consequences of employee commitment. Emphasis is placed on attitudinal aspects and behavioural influences, and the effect of human resources strategies and management practices on employee (organisational) commitment.

Employee (organisational) commitment is multidimensional. Theoretical research will focus on the defined research problem and objective of this study. Without the understanding of the theoretical background of employee (organisational) commitment, it would be very difficult for organisations to influence commitment and, ultimately, improve organisational effectiveness.

Understanding the theoretical research will enable an organisation to direct specific actions towards its human resources strategies and management practices to change employees attitudes (and, consequently, behaviour) in the hope of increasing employee (organisational) commitment.

1.2.2 Empirical research The application of the measurement instrument determined the employees attitudes towards human resources strategies and management practices over a period of time. Annual results were compared to assess the impact of directed actions to change employees attitudes towards human resources strategies and management practices.

A quantitative research method in the form of collecting data and analysing the data using statistical methods was used to support this study. Applied human resources strategies and management practices were directed towards employee (organisational) commitment, and the impact was measured (before and after) in the hope of demonstrating a causal relationship between the variables. Quantitative data analysis was used to identify patterns and relationships in the data.

The Global People Commitment Survey was used as measuring instrument for the purpose of comparison. The selective measuring instrument enabled a

comparison of employee commitment results of the Global People Commitment Survey between the year 2005 and the year 2006. The target population

consisted of 800 and 850 employees for the year 2005 and the year 2006, respectively, within a professional services organisation in the national auditing service line. An invitation to participate in the Global People Commitment Survey was sent out to the entire target population.

In order to fulfil the requirements of this research project, the selected sample population met certain criteria, such as that (1) all selected employees were included in the study and (2) the population was selected by means of profession, regional office, and business unit.

Based on the study, hypothetical variables (commitment statements) will be assessed, and only variation will be accounted for based on a comparison between the data for the year 2005 and that for the year 2006. A null hypothesis will be accepted as true. The null hypothesis H0 states that the responses for the two years are the same (Data (2005) = Data (2006)). The p value will be

compared to the significance level (), and on this basis, the null hypothesis will either be rejected or not rejected.

1.3

CHAPTER OUTLINE

Chapter 2 contains a literature review, focusing on the concept and consequences of employee (organisational) commitment. Chapter 3 deals with models and

discusses how human resources strategies and management practices combine to promote and influence employee commitment. In Chapter 4, an overview is given of the measuring of commitment and the method of investigation. In

Chapter 5, the results and outcome of the research conducted are reported and the research findings discussed. The recommendations, shortcomings of the

research, and conclusions are presented in Chapter 6.

1.4

CONCLUSION

Through understanding the concept of employee (organisational) commitment, including the antecedents of commitment, executives should be able to direct human resources strategies and management practices towards achieving organisational commitment levels that will ultimately contribute to a more effective workforce.

CHAPTER 2: EMPLOYEE ORGANISATIONAL COMMITMENT

2.1

INTRODUCTION

Ivancevich, Konopaske, and Matteson (2005:224) found that research evidence indicates that the absence of commitment can reduce organisational effectiveness. People who are committed are less likely to quit and accept other jobs. Chapter 1 outlined the problem statement, the aim, and the research methodology. This chapter will define employee organisational commitment and research

antecedents associated with employee organisational commitment. The benefits of a committed workforce are recognised throughout this chapter as important determinants of organisational effectiveness. The latter half of this chapter will look at consequences of employee commitment.

2.2

DEFINING EMPLOYEE ORGANISATIONAL COMMITMENT

Kreitner and Kinicki (2001:227), Greenberg and Baron (2003:160), Wood, Chapman, Fromholtz, Morrison, Wallace, Zeffane, Schermerhorn, Hund and Osborn (2004:115), Robbins (2005:79), Nelson and Quick (2005:87) and Gibson, Ivancevich, Donnelly and Konopaske (2006:184) refer to organisational

commitment as the extent to which an individual identifies with an organisation, is committed to its goals, their level of involvement within the organisation and wishes to maintain membership in the organisation.

Luthans (2005:217) found that organisational commitment is (1) a strong desire to remain a member of a particular organisation; (2) a willingness to exert high levels

of effort on behalf of the organisation; and (3) a definite belief in, and acceptance of, the values and goals of the organisation. Luthans (2005:217) further states that commitment is an attitude reflecting employees loyalty to their organisation and is an ongoing process through which organisational participants express their concern for the organisation and its continued success and well-being. Ivancevich, Konopaske, and Matteson (2005:224) collaborate by stating that commitment to an organisation involves three attitudes: (1) a sense of identification with the organisations goals, (2) a feeling of involvement in organisational duties, and (3) a feeling of loyalty to the organisation.

Swanepoel, Erasmus, Van Wyk, and Schenk (2003:30) is of the opinion that employee commitment to an organisations success largely depends on the employees perception of the extent to which their own needs and personal objectives will be met through their continual commitment to the success of the organisation. Buchanan and Huczynski (2004:764) refer to commitment as a

state of being in which individuals become bound to their actions and, through these, to their beliefs. Commitment sustains action in the face of difficulties.

Commitment can be influenced by a variety of psychological and work-related variables. In an attempt to learn how, one requires some understanding of the antecedents of commitment.

2.3

ANTECEDENTS OF COMMITMENT

Ashkanasy, Wilderom, and Peterson (2000:344) refer to antecedents of commitment as intervening variables that channel the occurrence and strength of

different commitments and Hellriegel and Slocum (2004:94) point out that an antecedent precedes and is a stimulus to behaviour. This view is supported by Hornby (2005:53) in the Oxford Dictionary where an antecedent is defined as a thing or an event that exists or comes before another, and may have influenced it.

Antecedents of commitment explore work-related attitudes and individual behavioural influences in the hope of understanding, explaining, and predicting human behaviour as intervening variables that channel the occurrence and strength of different commitments. According to Greenberg and Baron (2003:160), commitment can be seen as peoples attitudes towards the organisations in which they work and these attitudes influence their behaviour.

Mullins (2005:335) explains that individuals have different abilities, personalities, learning experiences and attitudes and therefore they perceive work in different ways. Managements should attempt to match the needs of the individual with the needs of the organisation in order to meet goals and achieve employee satisfaction. It is, therefore, evident that antecedents of commitment can be

referred to as work-related or individual-related.

2.3.1 Work-related attitudes Pfeiffer (1999:109) argues that all types of work experiences influence employee attitudes. Everything that happens to an employee at work affects his or her

attitude in some way. Any negative incident will have a small impact, but if there is widespread negativity, it can cause an organisational-wide bad attitude.

10

Greenberg and Baron (2003:146) and Robbins (2005:78) refer to work related attitudes as the attitudes we have toward our jobs, organisation or work environment. Work related attitudes tap positive or negative evaluations that

employees hold about aspects of their work. Greenberg and Baron (2003:146) explain that work related attitudes includes lasting feelings, beliefs, and behavioural tendencies toward various aspects of the job itself, the setting in which the work is conducted, and/or the people involved. Work related attitudes have a profound effect on the way we perform but also on the quality of life we experience while at work.

Van der Merwe (2006:32) explains that your mindset has an influence on people around you; it can even change the atmosphere in your workplace if one person is committed to acting. It is all about the kind of attitude you have. Hellriegel and Slocum (2004:51) believe that attitude-behaviour relationships can be

demonstrated by examining key work attitudes such as job satisfaction and organisational commitment.

According to Nelson and Quick (2005:87), job satisfaction and organisational commitment are two important work attitudes that are strongly related. Increasing job satisfaction is likely to increase commitment as well. Nelson and Quick

(2005:88) further explain that work attitudes are important, as they influence organisational success. Robbins (2005:78) indicates that research regarding

work-related attitudes in organisational behaviour has been concerned with three attitudes: Job satisfaction, job involvement and organisational commitment.

Each of the mentioned work-related attitudes will now be discussed.

11

2.3.1.1

Commitment as a work-related attitude

Robbins (2005:79), Luthans (2005:217), and Ivancevich, Konopaske, and Matteson (2005:224) indicate that organisational commitment is a work-related attitude. Commitment was already defined in Section 2.2 as an attitude that

defines a sense of identification with a particular organisation and the degree of involvement, reflecting an employees loyalty to his/her organisation.

2.3.1.2

Job satisfaction as a work-related attitude

Greenberg and Baron (2003:146-155), Wood et al. (2004:115) and Robbins (2005:29) define job satisfaction as peoples positive or negative feeling that an individual holds towards his or her job. Hellriegel and Slocum (2004:51-54), in the same manner, agrees that job satisfaction refers to feelings and reflecting attitudes towards a job. The relationship between job satisfaction and various job

behaviours and other outcomes in the workplace is recognised. Hellriegel and Slocum (2004:51-54) agrees that job satisfaction represents an outcome of the work experience and leads to effective performance and in turn organisational effectiveness.

Greenberg and Baron (2003:146-155) explains that job satisfaction is the various attitudes people hold toward their jobs. Job satisfaction exists to the extent that the job outcomes (such as rewards) an individual receives matches those outcomes that are desired.

Swanepoel et al. (2003:22-23) argue with this sentiment that job satisfaction stems in part from actual workplace conditions and in part from an individuals attitude

12

towards work in general. There is agreement that job satisfaction can have a profound influence on organisational success. Mullins (2005:700) is of the opinion that job satisfaction is usually linked to motivation and is more of an attitude then an internal state.

Ivancevich, Konopaske, and Matteson (2005:25) conclude that job satisfaction refers to the extent to which the organisation meets the needs of employees. Measures of satisfaction can include employee attitudes, turnover, absenteeism, tardiness, and grievances.

Gibson et al. (2006:108) are of the opinion that job satisfaction is an attitude that individuals have about their jobs. It results from their perception of their job, based on factors of the work environment, such as the supervisors style, policies and procedures, work group affiliation, working conditions and fringe benefits.

2.3.1.3

Job involvement as a work-related attitude

Ashkanasy, Wilderom, and Peterson (2000:331) point out that the term involvement has been used in the literature on organisations to refer to individuals attachments to both organisations and their jobs. Job involvement can be defined as the degree to which a persons work performance affects his self-esteem. Employees who are highly involved in their jobs are also highly involved in their organisations. This conceptualisation of involvement suggests that individuals

form bonds with organisations to the degree that their self-conceptions are engaged in their jobs or organisations.

13

Kreitner and Kinicki (2001:227) and Hellriegel and Slocum (2004:54) refers to job involvement as the strength of an employees involvement and the extent to which an individual is personally involved with his or her work and organisation. Wood et al. (2004:115) confirms that job involvement is the degree to which a person is willing to work hard and apply effort beyond normal job expectations.

Robbins (2005:79) refers to job involvement as the degree to which a person identifies psychologically with his or her job and considers his or her perceived performance level important to self-worth. Employees with a high level of job involvement strongly identify with and really care about the kind of work they do high job involvement has been found to be related to fewer absences and lower resignation rates. Wegge, Schmidt, Parkes, and Van Dick (2007:78-79) confirms that employees who are low in job involvement and organisational commitment are more absent from work then those with higher levels of job involved. They will take every chance to withdraw from work whenever it is not penalised by organisational policies.

Ivancevich, Konopaske, and Matteson (2005:177) refer to job involvement as an important individual difference. People differ in the extent that (1) work is a

central life interest, (2) they actively participate in work, (3) they perceive work as central to self-esteem, and (4) they perceive work as consistent with self-concept. Individuals who are not involved in their work cannot be expected to realise the same satisfaction as those who are.

14

2.3.2 Individual behavioural influences Perspectives on individual behavioural influences Hellriegel and Slocum (2004:48) are of the opinion that behaviour always involves an interaction of the person and the situation. Understanding individual

differences are important as it may explain more about their behaviour. Ivancevich, Konopaske, and Matteson (2005:77-78) found that individual differences have a direct effect on behaviour. Every person is unique because of their background, individual characteristics, needs, and how they perceive the world and other individuals. People who perceive things differently behave

differently. People with different attitudes respond differently to directives. People with different personalities interact differently with bosses, co-workers,

subordinates, and customers.

In a multitude of different ways individual

differences shape organisational behaviour, and consequently, individual and organisational success.

Demographic factors, abilities and skills, perception, attitudes, and personality are major individual variables that influence work behaviour. These individual

variables combine with various organisational variables (resources, leadership, reward, job design, and structure) to shape productive, non-productive, and counterproductive work behaviours. Attributions we make about why an event occurs influence our behaviour. Thus our behaviour is shaped by our perceptions of why certain things happen (Ivancevich, Konopaske, & Matteson, 2005:96).

Bowditch and Buono (2005:53) point out that state that managers can shape the outcomes they desire by focussing on relevant behaviours and interactions.

15

Gibson et al. (2006:93) explain that the analysis of individual behaviour requires consideration of variables that directly influence individual behaviour or what an employee does individual variables can include abilities and skills, background, and demographic variables an employees behaviour is complex because its affected by a number of environmental variables and many different individual factors, experiences, and events. Such individual variables as

abilities/skills, personality, perception, and experiences affect behaviour.

It is evident from the above that people respond differently to situations due to individual differences. It is important to understand individual behavioural

influences in order to shape behaviour. This section looks at seven individual variables that influence behaviour.

2.3.2.1

Attitude as an individual behavioural influence

Defining attitude Swanepoel et al. (2003:23) and Hellriegel and Slocum (2004:48) define attitude as the degree of positive or negative feelings, beliefs and behavioural tendencies a person has towards a particular object, such as a place, thing, situation or specific people. Ivancevich, Konopaske, and Matteson (2005:83) and Gibson et al.

(2006:104) agree that an attitude exert a specific influence on a persons response to people, objects, and situations with which it is related. They refer to an attitude as a mental state of readiness learned and organised through experiences.

Hellriegel and Slocum (2004:48) explain that attitudes are individual differences that reflect an individuals background and personal experiences; it has a direct

16

affect on behaviour. Ivancevich, Konopaske, and Matteson (2005:83) concur that attitudes are determinants of behaviour because they are linked with perception, personality, feelings and motivation.

Robbins (2005:78) is also of the opinion that attitudes are evaluative statements either favourable or unfavourable concerning objects, people, or events. Luthans (2005:205-206) is in agreement that an attitude can be defined as a persistent tendency to feel and behave in a particular way. The term attitude frequently is used for describing people and explaining their behaviour.

Attitude as an individual behavioural influence Swanepoel et al. (2003:23) aver that employees have positive job attitudes when they have pleasant internal feelings about their jobs or certain aspects of their jobs. Knowing to which aspects of a job employees respond either favourably or unfavourably can provide a basis for job design decisions. Managers can

reinforce positive features and improve or remove negative factors to influence the desired behaviour.

As indicated in Figure 2.1, Greenberg and Baron (2003:146) explain that regardless of exactly how you might feel, the attitudes you express may be recognised as consisting of three major components: an evaluative component, a cognitive component, and a behavioural component. Attitudes have a great deal to do with how we feel about something. The evaluative component of attitude refers to our liking or disliking of any particular person, item, or event (what might be called the attitude object or the focus of our attitude). Attitude also involves

17

knowledge that is, what you believe to be the case about an attitude object. These beliefs, whether theyre completely accurate or totally false, comprise the cognitive component of attitudes. As you might imagine, the things you believe about something and the way you feel about it may have some effect on the way you are predisposed to behave.

FIGURE 2.1: Three basic components of attitudes (Greenberg & Baron, 2003:146)

Ivancevich, Konopaske, and Matteson (2005:83) suggest that attitude has certain implications for the manager. First, attitudes are learned. Second, attitudes

define ones predispositions toward given aspects of the world. Third, attitudes provide the emotional basis of ones interpersonal relations and identification with others. And fourth, attitudes are organised and are close to the core or personality attitudes are subject to change Attitudes are intrinsic parts of a persons personality. The behavioural component of an attitude refers to the tendency of a person to act in a certain way toward someone or something. Robbins (2005:78)

18

agrees that the behavioural component of an attitude refers to an intention to behave in a certain way toward someone or something. behaviour and determine what people do. Attitudes affect job

The more specific the attitude or the dependable variable we are measuring and the more specific we are in identifying a related behaviour, the greater the probability that the relationship can be identified (Robbins, 2001:68-78). Luthans (2005:205-209) and Ivancevich, Konopaske, and Matteson (2005:83) agree that employee attitudes can be influence and changed.

The term attitude is frequently used to describe people and to explain their behaviour. The behavioural component consists of a persons tendency to behave in a particular way (Luthans, 2005:205-209). Ivancevich, Konopaske, and

Matteson (2005:83) explain that managers are often faced with the task of changing their employees attitudes in order to get them to work harder and achieve higher job performance. Attitudes can be changed. One such theory proposes that people seek congruence between their beliefs and feelings toward objects and suggests that the modification of attitudes depends on changing either the feelings or the beliefs. The theory proposes that cognition, affect, and behaviour determine attitudes, and that attitude, in turn, determines cognition, affect, and behaviour.

Bowditch and Buono (2005:53) point out that while an attitude may lead to intent to behave in a certain way, the intention may or may not be carried out depending

19

on the situation or circumstances. At the same time, while attitudes do influence behaviour, it is important to emphasize that behaviour also influences attitudes.

Gibson et al. (2006:104) refers to attitudes as important determinants of behaviour because theyre linked with perception, personality, and motivation. It is evident that attitude influences behaviour. Ivancevich, Konopaske, and

Matteson (2005:83) comment that attitudes are close to the core of personality attitudes are intrinsic parts of a persons personality. Personality is an individual difference that influences individual behaviour.

2.3.2.2

Personality as an individual behavioural influence

Personality defined Greenberg and Baron (2003:81) define personality as the unique and relatively stable pattern of behaviour, thoughts, and emotions shown by individuals. Hellriegel and Slocum (2004:38) state that personality represents personal characteristics that lead to consistent patterns of behaviour.

Wood et al. (2004:103) define personality as the overall profile or combination of traits that characterise the unique nature of a person. Nelson and Quick

(2005:52) are of the opinion that personality is a relatively stable set of characteristics that influence an individuals behaviour. Luthans (2005:197) also comments that personality has been defined as observable patterns of behaviour that last over time. Robbins (2005:100) defines personality as a dynamic concept describing the growth and development of a persons whole psychological system ... and (citing

20

Gordon Allport) the dynamic organisation within the individual of those psychophysical environment. systems that determine his unique adjustments to his

Ivancevich, Konopaske, and Matteson (2005:88) refer to an individuals personality as a relatively stable set of feelings and behaviours that have been significantly formed by genetic and environmental factors. It is a product of a number of forces that together have helped shape the unique individual. Gibson et al. (2006:113) echo most of the above and define personality as a relatively stable set of characteristics, tendencies, and temperaments that have been significantly formed by inheritance and by social, cultural and environmental factors. This set of

variables determines the commonalities and differences in the behaviour of the individual.

Based on the theoretical research, it can be agreed that personality represents personal characteristics that lead to consistent patterns of behaviour.

Personality and its effect on behaviour People are unique and possess a distinct pattern of traits and characteristics not fully duplicated in any other person. This pattern of traits and characteristics tends to be stable over time. Thus, if someone who is optimistic, confident, and friendly today, the chances are good that he or she also showed these same traits and characteristics in the past and will continue to show them in the future (Greenberg & Baron, 2003:81).

21

An understanding of the concept of personality would help generate knowledge that could improve a managers ability to make more accurate predictions of human behaviour in organisations (Saiyadain, 2003:23). Saiyadain (2003:35)

explains that the personality of the employees plays a key role in their workrelated behaviour.

According to Wood et al. (2004:103), understanding personality contributes to an understanding of organisational behaviour by helping us to see what shapes individuals, what they can do (competency) and what they will do (motivation). We expect there to be a predictable interplay between an individuals personality and the tendency to behave in certain ways. Ivancevich, Konopaske, and Matteson (2005:-90) and Gibson et al., (2006:113) explain that the major forces that shape personality indicate that managers have little control over these determinants. However, employee behaviour cannot be understood without considering the concept of personality. Personality is so interrelated with perception, attitudes, learning and motivation that any analysis of behaviour is grossly incomplete unless personality is considered.

Gibson et al. (2006:113), refer to personality as the manner in which a person acts and interacts. Figure 2.2 shows the determinants shaping personality and

indicates that managers have little control over them. Even though personality is formed outside the organisation, it is still an important factor in workplace behaviour. An employees behaviour cant be understood without considering the concept of personality.

22

FIGURE 2.2: Some major forces influencing personality (Gibson et al., 2006:113)

Personality factors will have a direct influence on job performance and commitment (Westerman & Simmons, 2007:292). behaviour. Personality affects individual

Wood et al. (2004:103) explains that values and norms play a

substantial role in the development of an individuals personality and behaviour.

Values are an individual variable that influences individual behaviour.

2.3.2.3

Values as an individual behavioural influence

Defining values David (2001:128) defines values as life-directing attitudes that serve as behavioural guidelines. Wood et al. (2004:111) define values as broad

preferences concerning appropriate courses of action or outcomes. As such, they reflect a persons sense of right and wrong, or what ought to be. Buchanan and

23

Huczynski (2004:648) support this view and define values as broad tendencies to prefer certain states of affairs over others.

Robbins (2005:70) contends that values represent basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence. Ivancevich, Konopaske, and Matteson (2005:39) and Gibson et al. (2006:32) define values as the conscious, affective desires or wants of people that guide their behaviour. Mullins (2005: 362) states that values are concerned with what should be and what is desirable.

According to Gibson et al. (2006:107), values are defined as the constellation of likes, dislikes, viewpoints, shields, inner inclinations, rational and irrational judgements, prejudices, and association patterns that determine a persons view of the world.

Values and their effect on behaviour According to Gibson, Ivancevich, and Donnelly (2000:31), organisations are able to operate efficiently only when shared values exist among the employees. An individuals personal values guide their behaviour on and off the job. Crosby

(2000:4-5) found that employee commitment is characterised by a strong belief and acceptance of the organisational goals and values and Buchanan and Huczynski (2004:648) explain that values provide a common direction for all employees and act as guideline for their behaviour.

24

Buchanan and Huczynski (2004:648) point out that values are often unspoken but can mould members behaviours. Many commentators agree that these values are the elements that distinguish one organisation from another, since they affect the basic assumptions of organisational culture.

Robbins (2005: 70-71) explains that values contain a judgemental element in that they carry an individuals idea as to what is right, good, or desirable Values are important as they lay the foundation for the understanding of attitudes and motivation and because they influence our perceptions Values generally influence attitudes and behaviour. Adonisi (2005:6) agree that values are

espoused as the reason for peoples behaviour, and the underlying assumptions. Values are normally unconscious but exert a profound influence on how people perceive, think, feel and therefore behave.

Potgieter (2006:36-37) suggests that employees personal values are aligned to those of the organisation and Conradie (2007:37) agree that employees want their personal values to be aligned to those of the organisation. Ivancevich,

Konopaske, and Matteson (2005:30-31) point out that for a person to be effective in an organisation, their values must be compatible.

Affective commitment increases when the organisation and employees share the same values and when the organisation emphasises values such as moral integrity, fairness, creativity, and openness (Nelson & Quick, 2005:87). Mullins (2005:150) refers to values as the guidelines a person uses to make choices, and within organisations, basic beliefs affect what decisions are made, how people

25

interact, and the kind of work practices that are pursued and developed. They form the glue that binds an organisations culture Organisations can increase their integrity, coherence, and integration and improve their performance by reaching consensus on shared values.

DuBrin (2005:60) concludes that a key factor influencing behaviour in organisations is the values and beliefs of people. A value refers to the importance a person attaches to something that serves as a guide to action.

People are not born with a particular set of values; values are learned in the process of growing up and can be influenced throughout life. The values of

employees mesh with those required of the job and organisation. When this state of congruence exists, job performance is likely to be higher and employees will be more confident to remain within the organisation (DuBrin, 2005:61-62).

Attitudes and behaviour can be different if values are not aligned to organisational policies such a pay. Values influence goals that a person would like to achieve during his or her life (Robbins, 2005:71). It is safe to assume that values have a direct effect on expectancy. Expectancy is an individual variable that influences individual behaviour.

2.3.2.4

Expectancy as an individual behavioural influence

Expectancy defined Nelson and Quick (2005:120) define expectancy as the belief that effort leads to performance. According to Wood et al. (2004:157), expectancy is the probability

26

that the individual assigns to work effort being followed by a given level of achieved task performance. People are motivated to work when they expect to achieve things they want from their jobs (Hellriegel & Slocum, 2004:130).

Robbins (2005:189) explains that Vrooms expectancy theory argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.

Gibson et al. (2006:148) define expectancy as the individual belief concerning the likelihood or subjective probability that a particular behaviour will be followed by a particular outcome such as level of performance. That is, expectancy is the

perceived chance of something occurring because of behaviour.

Taking all research definitions into account, it is apparent that expectancy is the probability of something occurring because of behaviour.

Expectancy and its effect on behaviour Gibson, Ivancevich, and Donnelly (2000:163) explain that expectancy theory assumes employees allocate their behaviour according to anticipated

consequences of actions. Workers weigh the information available to them and make decisions according to the value of the consequences and their own probabilities of achieving what they prefer. Expectancy theory thus views

behaviour as the product of what employees believe will happen in the future.

27

Swanepoel et al. (2003:30) are of the opinion that employees enter the organisations with certain tacit expectations regarding the employment

relationship. They generally expect to receive something in addition to the formal contractually-agreed upon salary, benefits and other conditions of employment; these expectations relate to aspects such as the way they will be treated, the nature of their work, the quality of their working life, and so on. Employees return to the organisation, in terms of work behaviour, performance, commitment, cooperation, loyalty, productivity etc, may largely be the result of how they experience or perceive the fulfilment of those expectations. Swanepoel et al. (2003:335) also explain that expectancy theories are based on motivational theories. Expectancy theory of motivation holds that the tendency to act in a certain way depends on the strength of the expectation that the act will be followed by a given outcome and on the degree to which the person desires that outcome. The expectancy theory is illustrated in Figure 2.3 below.

FIGURE 2.3: Expectancy theory (Swanepoel et al., 2003:335)

Buchanan and Huczynski (2004:254-255) found that expectancy theory assumes that we behave in ways that are instrumental to the achievement of valued goals Expectancy theory states that behaviour results from a conscious decision making process based on expectations, measured subjective probabilities, that the

28

individual has about the results of different behaviours leading to performance and to rewards. Expectancy theory helps to explain individual differences in motivation and behaviour.

Hellriegel and Slocum (2004:130) argue that expectancy affects behaviour within an organisation. People have expectations about their jobs that are based on their needs, motivation and past experiences. These expectations influence how

people respond to an organisation and how they behave, including staying with the same organisation or joining another, how hard they work and the quality of their work. To manage expectations, managers should try to determine the outcomes that each employee values and link the specific performance they desire to the outcomes desired by employees.

Mullins (2005:489) concludes that the underlying basis of expectancy theory is that people are influenced by the expected results of their actions ... the choices of behaviour are based on the expectancy of the most favourable consequences.

Expectancy theories draw attention to the complexities of work motivation. They provide further information in helping to explain the nature of behaviour and motivation in the work situation and help to identify problems in performance. Expectancy theory indicates that managers should pay attention to factors such as the relationship between reward and performance and the application of procedures, which include organisational procedures (Mullins, 2005:489-191).

29

According to Gibson, Ivancevich, and Donnelly (2000:163), managers can use expectancy theory in developing their own motivation programmes. There is a strong relationship between expectancy and motivation. Motivation is an individual variable that influences individual behaviour.

2.3.2.5

Motivation as an individual behavioural influence

Defining motivation Saiyadain (2003:41) (citing Luthans, 1998) defines motivation as a process that starts with physiological or psychological deficiency or need that activates behaviour or a drive that is aimed at a goal or incentive. Hellriegel and Slocum (2004:117) and Gibson et al. (2006:132) define motivation as the forces acting on or within an individual to initiate and direct behaviour. Gibson et al. (2006:132) explain that we use the concept of motivation to explain differences in the intensity of behaviour and to indicate the direction of behaviour.

Robbins (2005:170) agrees when he defines motivation as the processes that account for an individuals intensity, direction, and persistence of effort toward attaining a goal. Buchanan and Huczynski (2004:244) concludes in defining

motivation as the cognitive, decision making process through which goal directed behaviour is initiated, energised, and directed and maintained.

Motivation and its effect on behaviour According to Kreitner and Kinicki (2001:206), motivation involves a host of psychological processes that culminate in an individuals desire and intentions to behave in a particular way The outcomes of motivation are generally assessed

30

in terms of the behaviours actually exhibited behaviour is affected by motivation . Luthans (2005:230) agrees that motivation is a process that starts with a physiological and psychological efficiency or need that activates behaviour or a drive that is aimed at a goal or incentive.

Organisational variables, such as productivity, absenteeism, labour turnover and job satisfaction are commonly believed to be dependent on levels of motivation (Swanepoel et al., 2003:339).

The purpose of motivational content theories is to explain what motivation is and why people act in the way that they do. Why others refrain from doing certain things and how to in a predictable and systematic way influence people to act in the way we want them to. In terms of the basic motivational processes, needs give rise to tension, which in turn prompt behaviour directed at a specific goal which is perceived as being desirable in that it will lead to need-fulfilment (Swanepoel et al., 2003:339). Figure 2.4 represents a basic motivational process.

FIGURE 2.4: Basic motivational process (Swanepoel et al., 2003:324)

Swanepoel et al. (2003:177) suggest that the various theories on motivation contain important information that makes up the building blocks on our frames of

31

reference regarding the management of employees as individuals and understanding the behavioural consequences.

Buchanan and Huczynski (2004:260) support this argument by stating that managers are interested in theories of motivation as sources of alternative methods for encouraging motivation and high performance. Gibson et al.

(2006:132-134) describes motivation as an explanatory concept that we use to make sense out of the behaviours we observe. Theories of motivation attempt to explain and predict how individuals behaviour is aroused, sustained, and stopped.

Each of the four content theories on motivation explains the relationship between motivation and behaviour from a slightly different perspective. None of the

theories can or should be used by managers as the sole basis for explaining or inferring motivation (Gibson et al. 2006:144). Figure 2.5 indicates the four main content theories of motivation.

FIGURE 2.5: A graphic comparison of four content theories of motivation (Gibson et al., 2006: 145)

32

Mullins (2005:475-477) argues that when a persons motivational driving force is blocked and he/she is unable to satisfy his/her needs and expectations, there are two possible sets of outcomes: constructive behaviour or frustration.

Constructive behaviour is a positive reaction to the blockage of a desired goal and can take two main forms: problem-solving or restructuring. Problem-solving is the removal of the barrier, and restructuring is the substitution of an alternative goal. Frustration is a negative response to the blockage of a desired goal and results in a defensive form of behaviour. Possible reactions to frustrations may be aggression, regression, fixation, or withdrawal.

Luthans (2005:230) concludes that the key to understanding the process of motivation lies in the meaning of, and relationship among, needs, drivers, and incentives. In order to understand employees behaviour, these motives must be recognised and studied.

Kreitner and Kinicki (2001:207) argue that needs theories are based on the premise that individuals are motivated by unsatisfied needs. Needs are the first step in the motivation process and have a direct effect on individual behaviour.

2.3.2.6

Needs as an individual behavioural influence

Defining needs Kreitner and Kinicki (2001:209) define needs as physiological or psychological deficiencies that arouse behaviour. Hellriegel and Slocum (2004:117),

Ivancevich, Konopaske, and Matteson (2005:139) and Luthans (2005:230) express the view that needs are deficiencies that a person experiences at a

33

particular time. Gibson et al. (2006:133) agree that a need is a deficiency or lack of something of value that an individual experiences at a particular point in time.

Needs and their effect on behaviour Crosby (2000:20) explains that employees bring their needs, aspirations, and hopes to their jobs, and become committed to employers that understand those needs, aspirations and hopes and take concrete steps to help them materialise.

Merisalo (2001:2) found that the ability of an employer to meet employee needs at the various levels of the pyramid determines the employers ability to nurture commitment and, by doing so, create a more secure future for the organisation. Conway (2004:417) suggests that organisations seeking to promote commitment might need to tailor human resources practices to suite employees needs.

Swanepoel et al. (2003:22) explain that like values and attitudes, the needs of employees form a major potential source of work performance differences. Employers therefore have much to gain from attending to the needs of their employees. Environment and culture develop certain needs in individuals. The existence of a need can be deduced from an individuals behaviour. For instance, an individual may have an unsatisfied need. As a result, he/she develops a drive to satisfy that need. This leads to the release of energy in the form of behavioural patterns directed at a specific goal. When the goal is reached, the behaviour directed at satisfying the need will cease. become more important. Other unsatisfied needs will now

34

Hellriegel and Slocum (2004:117) found that needs are important as the motivational process begins with identifying a persons needs. As indicated in Figure 2.6, needs often act as energisers or triggers for behavioural responses. The implication is that when need deficiencies are present, the individual is more susceptible to a managers motivational efforts (Ivancevich, Konopaske & Matteson, 2005:139).

Luthans (2005:230) argues that needs are created whenever there is a physiological or psychological imbalance. He is of the opinion that although

psychological needs may be based on a deficiency, sometimes they are not. For example, an individual with a strong need to get ahead may have a history of consistent success. An incentive is used to alleviate a need and reduce the drive. Gibson et al. (2006:133; 184) found that when needs (deficiencies) are present; the individual will seek to fulfil those needs and may be more susceptible to managers motivational efforts. Organisations able to meet employees needs

may have a significant impact on commitment.

35

FIGURE 2.6: The motivation process: a general model (Ivancevich et al., 2005:139)

Mullins (2005:483) explain that revisiting and developing Maslows hierarchy, the dynamic between an individual and the organisation has to be explored, and a new employee/employer social contract that enables organisations to improve employee commitment and retention has to be proposed. Mullins (2005:483) lists the five levels of workforce needs hierarchy as shown in a Performance Pyramid: Safety/security the need to feel physically and psychologically safe in the work environment for commitment to be possible; Rewards the need for extrinsic rewards in compensation and benefits; Affiliation the intrinsic need for a sense of belonging to the work team or organisation; Growth addressing the need for positive individual and organisational change to drive commitment; and Work/life harmony the drive to achieve a sense of fulfilment in balancing work and life responsibilities.

36

Mullins (2005:438) explains that individual needs will affect the stimuli perceived in the first instance, and then the way in which those stimuli are understood and processed, and finally the response which is given. Mullins (2005:37) further explains that the extent of the matches between individual and organisational expectations also influences the willingness of employees to stay with the organisation and of the organisation to continue to employ them. Successful

companies are those that have the ability to balance the unwritten needs of their employees with the needs of the company.

Mullins (2005:438) found that the needs of an individual will affect his/her perceptions, and Gibson et al. (2006:102) indicate that perceptions are significantly influenced by needs. influences individual behaviour. Perception is an individual variable that

2.3.2.7

Perception as an individual behavioural influence

Defining perception Hellriegel and Slocum (2004:66) assert that perception is the process by which people select, organise, interpret, and respond to information from the world around them. This information is gathered from the five senses: sight, hearing, touch, taste, and smell. Robbins (2005:134) agrees and defines perception as the process by which individuals organise and interpret their sensory impressions in order to give meaning to their environment. However, what one perceives can be substantially different from objective reality.

37

How people interpret things in the outside world depends on their perceptions. It is important to understand that people will act on the basis of these perceptions DuBrin (2005:47). Mullins (2005:437) agrees that perception gives rise to

individual behavioural responses. The process of perception explains the manner in which Individuals select and organise information (stimuli) from the environment around us to provide meaning. Gibson et al. (2006:99) conclude by defining

perception as the process by which an individual gives meaning to the environment. It involves organising and interpreting various stimuli into a

psychological experience.

Perception and its effect on behaviour Hellriegel and Slocum (2004:66) explain that different people perceive a situation differently, both in terms of what they selectively perceived and how they organise and interpret the things perceived. Peoples interpretations of their environments affect their responses. Buchanan and Huczynski (2004:49-50) then found that individuals based their decisions on their perception of the external environment. Human perception is selective; with some factors given prominence and often filtered out the same environment may thus be perceived differently by different people.

Based on individual perceptions, each person makes personal/individual choices and responds differently. People see their work and organisations in their own

unique way and respond behaviourally according to their interpretation. Understanding perceptual interpretation will help managers to explain behaviour

38

(Ivancevich, Konopaske & Matteson, 2005:110). Figure 2.7 illustrates the basic framework and elements of perception operating a cognitive process.

FIGURE 2.7: The perceptual process in individual interpretation (Ivancevich et al., 2005: 111)

According to Luthans (2005:168), perception is a unique interpretation of a situation and not an exact recording. Perception is largely learned and because The same But

no one has the same learning and experience, perception will differ.

situations/stimuli may produce very different reactions and behaviours.

Robbins (2005:134) contends that a number of factors operate to shape and sometimes distort perception as indicated in Figure 2.8. These factors can reside in the perceiver, in the object or target being perceived, or in the context of the situation in which the perception is made

39

FIGURE 2.8: Factors that influence perception (Robbins, 2001:124)

Gibson et al. (2006:99-100) express the view that individuals use five senses to experience the environment Organising the information from the environment so that is makes sense, is called perception Perception helps individuals select, organise, store, and interpret stimuli into a meaningful and coherent picture of the world. Because each person gives her own meaning to stimuli, different

individuals see the same thing in different ways. The way an employee sees a situation often has much greater meaning for understanding behaviour than does the situation itself. According to Brammer, Millington, and Rayton (2007:52),

employee perception of an organisation influences the degree to which the employee is committed to that organisation.

Wandrag (2007:34) explains that thoughts, words and actions are all driven by the perceptions we have of others and ourselves.

40

Research done by Robertson, Wing-Hung Lo, and Tang (2003:2) indicates that commitment has been found to be related to a variety of attitudinal and behavioural consequences among employees. consequences of commitment in the workplace. The next section will explore

2.4

CONSEQUENCES OF COMMITMENT IN THE WORKPLACE

Gibson et al. (2006:184) explain that committed employees are less likely to quit their jobs, it was mentioned earlier that Greenberg and Baron (2003:156) indicate that the more highly committed employees are to the organisation, the less likely they are to be absent, and Hellriegel and Slocum (2004:54-55) agree that strong commitment is often correlated with high productivity. commitment consequences will now be discussed. Each of the mentioned

2.4.1 Work turnover as a consequence of commitment Work turnover defined Wood et al. (2004:116) define turnover as the decision by people to terminate their employment, and Robbins (2005:28) defines turnover as the voluntary and involuntary permanent withdrawal from an organisation.

Perspectives on turnover Merisalo (2001:2) found that turnover is less among committed employees and (Robbins, 2001:236) is of the opinion that turnover in a group will be greatest amongst those with dissimilar experiences because communication is more difficult. According to Robbins (2001:236) it is projected that in a department or

41

separate work groups in which a large portion of members entered at the same time, there is considerably more turnover among those outside the cohort.

Hellriegel and Slocum (2004:54) explain that managers are interested in the relationship between organisational commitment and job behaviour because the lack of commitment often leads to turnover. The stronger the commitment to the organisation the less likely the person is to quit.

According to Robbins (2005:28), a high rate of turnover results in increased recruiting, selection and training cost a high rate of turnover can also disrupt the efficient running of an organisation when knowledgeable and experienced employees leave and replacements must be found and prepared to assume positions of responsibility when turnover is excessive, or when it involves valuable performers, it can be a disruptive factor, hindering the organisations effectiveness.

Turnover can be very expensive. It is estimated that turnover costs range from a conservative 30% of annual salary plus benefits to as much as 150% of a workers yearly pay (Mohonathan, 2007:22). Ivancevich, Konopaske, and Matteson

(2005:223) agree that a high turnover rate means more expense for an organisation. The issue of turnover needs to focus on the frequency and on who is leaving as some organisations would benefit if disruptive and low performers quit.

42

Gibson et al. (2006:184) assert that committed people are less likely to quit and accept other jobs. Thus, costs of high turnover arent incurred.

An individuals level of organisational commitment can be an indicator of turnover (Robbins, 2005:79). Luthans (2005:215) found that commitment to the

organisation plays a key role in turnover. Even satisfied employees are willing to leave if the opportunities elsewhere promise to be better. However, a recent

article, published by The Hay Group (2006:22), points out that, in companies with high turnover, you can assume higher than normal levels of dissatisfied employees whose attitudes and behaviours affect the bottom line.

Pienaar (2007:21) explain that the factors that separate you from your competitors today are the skills, knowledge, commitment, and abilities of the people who work for you. High turnover is expensive as it cost money to replace people. Also taking into account when you lose people, you lose knowledge, experience, and customer relationships. Friedman (2005:15) explains that employers should also be aware of spiritual turnover. People being physically present but disengaged. Research shows that there is a direct relationship between engagement at work, performance, and productivity.

2.4.2 Absenteeism as a consequence of commitment Absenteeism defined Wood et al. (2004:116) describe absenteeism as the failure of people to attend work on a given day. Robbins (2005:20) defines absenteeism as the failure to report to work. Mahomedy (2006:30), citing Macmillan Dictionary, defines

43

absenteeism as the habit of not being at school or work when you should be, usually without a good reason.

Perspectives on absenteeism Gibson, Ivancevich, and Donnelly (2000:186) suggest that employees go to work because theyre motivated to do so; the level of motivation remains high if an individual feels that attendance leads to more valued rewards and fewer negative consequences than alternative behaviours. Managers appear to have some

influence over attendance behaviour. They have the ability to punish, establish bonus systems, and allow employees participation in development plans. Whether these or other approaches reduce absenteeism is determined by the value of the rewards perceived by employees, the amount of the rewards, and whether employees perceive a relationship between attendance and reward.

Robbins (2001:20; 69) is of the opinion that it is important for organisations to keep absenteeism low, as it is costly. It is difficult for organisations to operate smoothly and to attain their objectives if employees fail to report for their jobs. Absenteeism has a direct impact on organisations effectiveness and efficiency. Ivancevich, Konopaske, and Matteson (2005:223) explain that absenteeism is a costly and disruptive problem facing managers. It is costly because it reduces output and disruptive because it requires that schedules and programmes be modified ... employees go to work because they are motivated to do so. The level of motivation will remain high if an individual feels that attendance will lead to more valued rewards and fewer negative consequences than alternative behaviours.

44

Greenberg and Baron (2003:156-163) found that the more highly committed employees are to the organisation, the less likely they are to be absent. Being committed leads people to show up when they are supposed to.

Hellriegel and Slocum (2004:54) display the same sentiments and agree that strong commitment also is often correlated with low absenteeism. Paulson

(2007:47) found that absenteeism had an enormous impact on overall organisational productivity. Smanjak (2007:19-20) agree and claims that

absenteeism has a material effect on the bottom line of almost every organisation and also on staff morale. Many organisations implement behavioural Kristensen, Juhl, Eskildsen,

programmes to curb unscheduled absences.

Nielsen, Frederiksen, and Bisgaard (2006:1645-1650) found that, in human resources studies, the primary purpose is to predict absenteeism through motivationally based variables such as job satisfaction and commitment. Lilford (2005:4) suggests that the most effective way of proactively monitoring productivity is to have an effective absenteeism management system in place.

2.4.3 Productivity as a consequence of commitment Productivity defined Wood et al. (2004:8) define productivity as a summary measure of the quantity and quality of work performance, which also accounts for resource use. Robbins (2005:27) defines productivity as a performance measure that includes effectiveness and efficiency.

45

Perspectives on productivity Burton (2001:13-14) explains that we live in a time when employee motivation, commitment, innovation and openness to change are essential for business survival and success. Research has shown that customer service begins inside an organisation with the way employees are treated, valued, respected, empowered and rewarded. For this reason organisational results are linked to the way organisations manage and motivate their people. The fact is that you cannot achieve business success without employee commitment.

According to Hellriegel and Slocum (2004:54-55), strong commitment is often linked with relatively high productivity. Committed employees tend to be more goal directed and waste less time while at work, which has a positive impact on productivity. Nelson and Quick (2005:87) agree that commitment is related to higher quality of work, increased productivity, and enhanced performance. Ivancevich, Konopaske and Matteson (2005:402) explain that committed employees will exert extraordinary effort to carry out work requests and are more dependable. Forman (2005:137) acknowledge that there is a strong positive Commitment is

relationship between employee commitment and productivity. critical and vital for organisational effectiveness.

An article published in Compensation & Benefits for Law Offices (2006:2) explain that those organisations that implemented human resources practices that showed high commitment towards employees were more productive than their industry peers that did not use such practices. Rice (2007:15) explains that engaged

employees are committed and, therefore, more productive.

46

2.5

SUMMARY

In this chapter, the theoretical and literature study on organisational (employee) commitment was discussed. Antecedents associated with employee

organisational commitment were explored to understand the influences of a variety of psychological and work-related variables. The effect of individual behavioural influences and work-related attitudes on commitment and the consequences of commitment for organisational effectiveness are evident in this chapter. The

benefits of a committed workforce are recognised throughout this chapter as important determinants of organisational effectiveness. Chapter 3 of this study will explore and define the theoretical framework on human capital strategies to promote commitment.

47

CHAPTER 3: COMMITMENT

HUMAN CAPITAL STRATEGIES TO PROMOTE

3.1

INTRODUCTION

According to Robbins (2005:538), an organisations human resource policies and practices represent important forces for shaping employee behaviour and attitudes. In Chapter 2, Bowditch and Buono (2005:53) explain that by focussing on relevant behaviours and interactions, managers can begin to shape the outcomes they desire , such as employee commitment. Msomi (2005:26)

explains that human resources professionals must create practices that make employees more productive and committed and, therefore, organisations more effective. Sulcas (2007:12) argues that central to the ongoing success of an

organisation are committed employees and that human resources practices can assist in developing commitment. Willemse (2007:17) suggests that human

capital specialists should be assisting management in understanding what is important to employees in order to retain talent and to enhance employee commitment. This chapter deals with models and a discussion of how human resources strategies and management practices combine to promote and influence employee commitment.

3.2

INFLUENCING COMMITMENT

Kinnear and Sutherland (2001:16-18) point out that in this knowledge economy an organisations most important asset is the energy and loyalty of its people, the intellectual capital that, unlike machines and stock, can quit and work for the

48

competition. Human resources need to help managers understand the drivers of commitment. It is the line managers, however, who have to apply and drive

strategies through strategic programmes, policies, and procedures that will create and sustain employee commitment. Kreitner and Kinicki (2001:227) suggest that increased job satisfaction may elicit higher levels of commitment. Taylor (2005:2829) suggest that human resources should deliver practical people management solutions to the challenges facing their organisation, such as employee commitment.

According to an article published by Personnel Today (2006:95), IRS survey results revealed that ethical employment policies have the greatest impact on employee commitment and loyalty. Kelly (2007:27) found that organisations with more mature human capital processes have been shown to have the highest levels of employee commitment.

Robbins (1986:491) explains that employee commitment can be influenced: Since employees behave based on their perceptions of the world rather than its reality, perceptions are a powerful moderator of employee commitment; a poor job match will sub-optimise the employees ability and reduce motivation; the right leadership style (congruent with the employees needs) will stimulate higher productivity; organisational structure, policies and procedures and culture influence an employees productivity; the organisations performance evaluations and reward system are a critical element impacting on motivation and eventually productivity; if the evaluation system is seen as unfair, motivation will decline; similarly, if rewards are not productivity based, they will not reinforce the right

49

behaviour; organisational culture is a strong force influencing employee motivation and productivity; etc. effectiveness. All of these have a direct effect on organisational

Today, companies recognise the importance of creating an environment and culture where employees feel motivated and committed. This leads to the delivery of superior quality and value to customers and in turn increases organisational effectiveness (Crosby, 2000:3). Robbins (2001:519) suggests that human

resources practices reinforce organisational culture and assist managers to create an environment conducive to motivating and creating employee commitment. The selection process, performance evaluations, training and career development activities, and promotions procedures ensure that those hired fit in with the culture, reward those who support it, and penalise those who challenge it.

Crosby (2000:3) explains that employees have opinions about the organisations performance in key process areas that relate to human resources management. Those evaluations influence the perception of the organisations commitment to different stakeholder groups which, in turn, impacts the degree of employee commitment to the organisation . If work experiences are truly pre-eminent, this bodes well for the organisations ability to manage commitment by impacting employees perceptions of human resource practices (Crosby, 2000:7).

Ashkanasy, Wilderom, and Peterson (2000:348) argue that organisational commitment is often understood as an attribute of individual thinking and behaviour toward an organisation. However, organisational commitment is social

50

commitment in the sense that organisations need to influence and control the commitment of their members toward objects relevant for organisational success.

Mullins (2005:746) explains that the efficiency and performance of employees, and their commitment to the objectives of the organisation, are fostered by good human relationships at work. This demands that proper attention be given to human resource management and harmonious employment relations. The

manager needs to understand the importance of good managerial practices and how to make the best use of people. The promotion of good human relations is an integral part of the process of management and improved organisational performance.

Ivancevich, Konopaske, and Matteson (2005:169) contend that winning employee commitment requires a comprehensive, multifaceted management system, consisting of an integrated and internally consistent package of concrete actions, policies and procedures. Nelson and Quick (2005:87), agrees that organisational conditions encourage commitment.

Buchanan and Huczynski (2004:203) (citing James March and Herbert Simon (1995)) argue that management cannot change individual behaviour directly, or by attempting to alter peoples personalities. It is more effective and practical, they observed, to manipulate the premises on which people make their own decision about how they will behave. In order to obtain commitment, managers should focus on how they can manipulate the premises the underlying assumptions that influence the day-to-day decisions of employees. This can be achieved through

51

different human resources strategies and management practices that reinforce desirable and undesirable behaviour.

3.3

MODELS AND DISCUSSIONS OF HUMAN RESOURCES STRATEGIES

AND MANAGEMENT PRACTICES THAT INFLUENCE COMMITMENT Dorenbosch, De Reuver, and Sanders (2006:274-291) found that the role of human resources is positively related to the commitment strength within an organisation.

Gibson, Ivancevich, and Donnelly (2000:400) point out that communication is the common thread that ties people, plans, strategies, and commitment together. Robbins (2001:340) explains that followers will exhibit extraordinary commitment and loyalty to their leaders, and Robbins (2005:489) asserts that organisational culture facilitates the generation of commitment. Greenberg and Baron (2003:166167) contend that companies that show their employees that they care enough to work hard to attract (recruit) them are likely to find those individuals strongly committed to the organisation. Crosby (2000:1) points out that employee

commitment are affected by and can be improved through development activities. Kreitner and Kinicki (2001:227) suggest that committed employees are committed to organisational goals and that higher commitment can facilitate higher productivity (performance). Greenberg and Baron (2003:165) explain that reward strategies are used to create employee commitment in organisations.

Models and discussions of human resources strategies and management practices that influence commitment will now follow.

52

3.3.1 Effect of communication on commitment Communication defined Swanepoel et al. (2003:669) are of the opinion that communication can generally be viewed as the process of conveying and sharing information between interacting people.

Wood et al. (2004:285) define communication as an interpersonal process of sending and receiving symbols with meaning attached to them. Nelson and

Quick (2005:153) refer to communication as the evoking of a shared or common meaning in another person. Robbins (2005:299) defines communication as the transference and understanding of meaning.

Gibson et al. (2006:427) conclude by defining communication as the transmission of information and understanding through the use of common symbols.

Perspectives on communication Gibson, Ivancevich, and Donnelly (2000:400) point out that good communication is the common thread that ties people, plans, strategies, and commitment in other words, the entire organisational fabric together.

David (2001:135) argues that communication is a major component in motivation. Management processes becomes a lot easier when subordinates are encouraged to discuss their concerns, reveal their problems, provide recommendations, and give suggestions. Managers can influence their people to commit themselves to the organisation though effective communication. According to Robbins

53

(2005:299) motivation can be stimulated through the formation of specific goals, feedback on progress toward the goals, and reinforcement of desired behaviour all of which requires communication.

Robbins (2005:299) explain that communication serves four major functions within a group or organisation: control, motivation, emotional expression, and

information Communication fosters motivation by clarifying to employees what is to be done, how well they are doing, and what can be done to improve performance if its subpart ....

There is a direct link between communication and employee satisfaction: the less the uncertainty, the greater the satisfaction. Distortions, ambiguities, and

incongruities all increase uncertainty and, hence, they have a negative impact on satisfaction Whatever the senders expectations, the decoded message in the mind of the receiver represents his or her reality. And it is this reality that will determine performance, along with the individuals level of motivation and his or her degree of satisfaction (Robbins, 2005:323).

A purpose, expressed as a message to be conveyed, is needed before communication can take place. This message passes between a source (the sender) and a receiver. The message is encoded (converted to symbolic form) and is passed by way of some medium (channel) to the receiver, who retranslates (decodes) the message initiated by the sender. The result is transference of

meaning from one person to another (Robbins, 2005:300). Figure 3.1 depicts the communication process.

54

FIGURE 3.1: The communication process model (Robbins, 2005:300)

The sender initiates a message by encoding a thought. The message is the actual physical product from the senders encoding The channel is the medium through which the message travels ... The receiver is the object to whom the message is directed. But before the message can be received, the symbols in it must be translated into a form that can be understood by the receiver. This is the decoding of the message. Noise represents communication barriers that distort the clarity of the message. Noise sources include perceptual problems,

information overload, semantic difficulties, or cultural differences Feedback is the check on how successful we have been in transferring out messages as originally intended (Robbins, 2005:300). Robbins (2001:285) points out that skill, attitudes, knowledge, and the social-cultural system are four conditions that affect the encoding of a message.

Swanepoel et al. (2003:669) explain the importance of communicating to subordinates. The quality of labour and employee relations depends upon the nature and quality of the communication between all the parties involved. Bakos (2007:33) agree and suggests that open and transparent communication is key to retention and commitment. Buchanan and Huczynski (2004:178; 203) found that communication is central to understanding organisational behaviour and state that

55

companies do not pay enough attention to communication which results in absenteeism, staff turnover, low productivity and disputes.

Ivancevich, Konopaske, and Matteson (2005:443) point out that there are numerous barriers to effective communication. Among the more significant are frame of reference, selective listening, value judgments, source credibility, filtering, in-group language, status differences, time pressures, and communication overload. Improving organisational communication is an ongoing process.

Specific techniques for doing this include following up, regulating information flow, utilising feedback, empathy, repetition, encouraging mutual trust, effective timing, simplifying language, effective listing, using the grapevine, and promoting ethical communication.

Communication is an integral part in the field of organisational behaviour but mostly neglected by management. Effective communication is a basic prerequisite for the attainment of organisational strategies and human resource management. Communication plays an important role in managerial and organisational effectiveness as indicated in figure 3.2 (Luthans, 2005:315).

56

FIGURE 3.2: The contribution of communication activities to real managers effectiveness (Luthans, 2005:315)

Bowditch and Buono (2005:115) conclude that communication is one of the fundamental processes of management. From a managerial perspective,

communication can be analysed in terms of three broad functions: (1) production and regulation (communication focused on getting the work done and meeting organisational output objectives such as quality control); (2) innovation (messages about new ideas and changing procedures that help the organisation adapt and respond to its environment); and (3) socialisation and maintenance

(communication focused on the means of getting the work done rather than on the work itself, and on the personal involvement, interpersonal relationships, motivation of individuals in the organisation). Each of these functions is important for an effectively and efficiently managed organisation.

57

Communication plays a major part in persuading employees to work in the interest of the organisation and to align expectations. Robbins (2005:332) explain that leaders align people though communication and have the ability to influence a group. Communication channels reinforce desirable behaviour and, consequently, influence commitment.

Bothma (2007:20) claims that if you involve people through communication, you will get their support and commitment; ignore them at your own peril.

3.3.2 Effect of leadership on commitment Leadership defined Hellriegel and Slocum (2004:250) are of the opinion that leadership is the process of developing ideas and a vision, living by values that support those ideas and that vision, influencing others to embrace them in their own behaviours, and making hard decisions about human and other resources.

Hamlyn (2005:43) explain that leaders create vision and develop strategies, engage, motivate and inspire people, build trust and have courage.

Mullins (2005:316) explains that leadership is essentially the relationship through which one person influences the behaviour or actions of other people. Robbins (2005:323) defines leadership as the ability to influence a group toward the achievement of goals. Gibson et al. (2006:313) conclude by defining leadership as an interaction between members of a group. Leaders are agents of change, persons whose acts affect other people more than other peoples acts affect them.

58

Leadership occurs when one group member modifies the motivation or competencies of others in the group.

Perspectives on leadership Gibson, Ivancevich, and Donnelly (2000:271-273; 308) suggest that leaders are individuals who influence other individuals to do what they might not do in the absence of the leaders influence A leader can make a difference in measures of organisational effectiveness: productivity, efficiency, quality, flexibility,

satisfaction, competitiveness, and development Leader behaviour has an effect on the followers performance and job satisfaction people develop positive attitudes towards objects that are instrumental in satisfying their needs for example a leader and the other way around as indicated in Figure 3.3. Individuals may view the leader as effective or ineffective according to the satisfaction they derive from the total work experience.

FIGURE 3.3: A framework for studying leadership (Gibson et al., 2000:273)

59

Leadership plays a central part in understanding group behaviour, for its the leader who usually provides the direction toward goal attainment (Robbins, 2001:340). There are various leadership theories. The original search for a set of universal leadership traits failed the behavioural approachs major contribution was narrowing leadership into task-oriented and people-oriented styles. But no one style was found to be effective in all situations. A major breakthrough in our understanding of leadership came when we recognised the need to develop contingency theories that included situational factors as indicated in Figure 3.3 (Robbins, 2001:340).

Robbins (2001:340) explains that more recently, neocharismatic theories have gained increased acceptance. As we learn more about the personal

characteristics that followers attribute to charismatic and transformational leaders, and about the conditions that facilitate their emergence, we should be better able to predict when followers will exhibit extraordinary commitment and loyalty to their leaders and to those leaders goals. Robbins (2001:327) later states that

neocharismatic theories also refer to a final set of leadership theories that emphasise symbolism, emotional appeal, and extraordinary follower commitment.

Swanepoel et al. (2003:358) explain that leaders have the ability to communicate an extraordinary focus of commitment. Leaders manage attention through a

compelling vision or picture that provides focus for people. Hellriegel and Slocum (2004:278) support this argument and agree that leaders can get followers involved in, and eventually committed to, a vision of a future state.

60

Buchanan and Huczynski (2004:747) explain that effective leaders adapt their style to fit the organisational and cultural context in which they operate. Considerate behaviour reduces labour turnover and improves job satisfaction. Initiating structure improves performance but reduces job satisfaction. Effective leaders combine consideration when initiating structure. Manion (2004:167)

found that leaders who understood the concept of organisational commitment and key factors that result in commitment could consciously choose behaviours to support this process.

Hellriegel and Slocum (2004:250) comment that organisational effectiveness and success are greatly influenced by the quality of its leadership ... Todays leadership should be able to mobilise ideas and values that energise other people. And in todays world, thats less and less through command and control, and more and more through changing peoples mindsets and hence altering the way they behave. Kerrigan (2005:19) explain that if senior management adopted values based strategies and people centred practices, we would be able to kick-start processes that win the hearts and minds of our employees .

According to Ivancevich, Konopaske, and Matteson (2005:492), there are three important variables with which every leader must deal: (1) the people who are being led, (2) the task that the people are performing, and (3) the environment in which the people and the task exist All leaders of effective groups share four characteristics in common: (1) they provide direction and meaning to the people they are leading, (2) they generate trust, (3) they favour action and risk taking. That is, they are proactive and willing to risk failing in order to succeed, and (4)

61

they are purveyors of hope. In both tangible and symbolic ways they reinforce the notions that success will be attained.

Truter (2007:18) found that significant organisational change occurs only when there is top-down commitment from organisational leadership. Erasmus (2007:29) adds that a leaders attitude will influence the group environment and therefore can increase the levels of commitment. Ayers (2007:16) agree that you need committed leaders to get people engaged and committed. De Beer (2007:12) suggests that leaders evoke commitment; they understand what makes people tick. Naidoo (2007:46) is of the opinion that top management, as the

organisations leadership, influences dedication and commitment.

Hattingh (2007:28) suggests that people are attracted to, and incentivised to stay with, companies where the leadership has presence, stature, impact, compassion, integrity and energy. Nelson and Quick (2005:371) (citing Edgar Schein) found that leaders play crucial roles in shaping and reinforcing culture. Organisational culture reinforces desirable behaviour and, consequently, influences commitment.

3.3.3 Effect of organisational culture on commitment Organisational culture defined Hellriegel and Slocum (2004:378) and Ivancevich, Konopaske, and Matteson (2005:42) refer to organisational culture as what employees perceive and how this perception creates a pattern of beliefs, expectations, ideas, values, attitudes, and behaviours shared by the members of an organisation that evolve over time. Robbins (2005:485) refers to organisational culture as a system of shared

62

meaning held by members that distinguishes the organisation from other organisations.

DuBrin (2005:294) refers to organisational culture as a system of shared values and beliefs that influence worker behaviour. ShamRao (2005:6) agrees and

explain that organisational culture will define the attitudes of employees towards the organisation, organisational property, and other workers. These attitudes will be observable in how people behave.

Gibson et al. (2006:31) conclude in defining organisational culture as what employees perceive and how this perception creates a pattern of beliefs, values and expectations. According to Teke (2005:36), organisational culture is creating a distinct sense of the way we do things around here. According to Gibson et al. (2006:31) (citing Edgar Schein), organisational culture can be defined as a pattern of basic assumptions invented, discovered, or developed by a given group as it learns to cope with the problems of external adaptation and internal integration that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.

Perspectives on organisational culture Gibson, Ivancevich, and Donnelly (2000:30-31) explain that organisational culture influences behaviour and drives expectations. An employee would like to work in an organisation that indicates the same type of values that he/she has, and therefore, culture has a direct effect on attracting talent and retaining talent

63

through commitment. The culture and brand are part of selling the organisation as a preferred employer.

Crosby (2000:7-10) suggests that human resource management policies and practices symbolically communicate the organisations values to participants. Policies and practices become part of the culture by signalling who and what is important around here. Culture, in turn, serves as a guide to employee behaviour It remains an empirical issue as to how human resource management activities and culture combine to influence employee commitment. In fact, there may well be different patterns of human resource management process performance and stakeholder salience perceptions that motivate employees to attach to and support organisations. That expectation would be in-line with the contingency and

configurational approaches to human resource management which concern the consistency of human resource management practices and their fit with organisational goals, strategy, and structure.

Hellriegel and Slocum (2004:381) found that when members of the same organisation shares knowledge and assumptions as they discover or develop ways of coping with issues of external adoptions and internal integration, organisational culture emerges. Figure 3.4 shows a common pattern in the

emergence of organisational cultures.

64

FIGURE 3.4: How cultures emerge (Hellriegel & Slocum, 2004:381)

Hellriegel and Slocum (2004:383) explain that the way in which an organisation functions and is managed may have consequences for maintaining and changing organisational culture. The organisation hires individuals who seem to fit its culture; the organisation then maintains its culture by removing employees who consistently or markedly deviate from accepted behaviours and activities. Hellriegel and Slocum (2004:392-393) further explain that organisational culture involves a complex interplay of formal and informal systems that may support either ethical or unethical behaviour. Formal systems in general include

leadership, structures, policies, reward systems, orientation and training programmes, and decision-making processes. Informal systems include norms, heroes, rituals, language, myths, sagas, and stories.

Robbins (2005:489) asserts that organisational culture impacts on behaviour and that a strong culture should be associated with reduced turnover. Culture

performs a number of functions within an organisation. First, it has a boundarydefining role; that is, it creates distinctions between one organisation and others. Second, it conveys a sense of identity for organisation members. Third, culture facilitates the generation of commitments to something larger than ones individual self-interest. Fourth, it enhances social system stability. Culture is the social glue

65

that helps hold the organisation together by providing appropriate standards for what employees should say and do. Finally, culture serves as a sense-making and control mechanism that guides and shapes the attitudes and behaviour of employees.

Organisational culture exerts influence on individual, group, and organisational processes; it involves shared values, expectations and attitudes among employees within the same organisation (Ivancevich, Konopaske & Matteson, 2005:42). Ivancevich, Konopaske, and Matteson (2005:45-46) further explain as indicated in Figure 3.5, that the evolution of a positive culture mode, emphasises an array of methods and procedures that managers can use to foster a cohesive culture. The word home is highlighted, which suggests the importance of history, oneness, membership and exchange among employees. Creating or changing a culture is very complex. Making it even more complex is the fact that cultures can be hidden so that they cannot be adequately diagnosed, managed, or changed.

66

FIGURE 3.5: The evolution of a positive culture (Ivancevich et al., 2005:47)

Luthans (2005:123) found that some organisational cultures may be the direct, or at least indirect, result of actions taken by the founders. However, this is not always the case. Sometimes founders create weak cultures, and if the

organisation is to survive, a new top manager must be installed who will sow the seeds for the necessary strong culture. DuBrin (2005:297) points out that

depending on its strength, organisational culture can have a pervasive impact on organisational effectiveness. Employees of an organisation with a strong culture will follow its values with little questioning.

Mullins (2005:896-897) explain that the applications of organisational behaviour and the effective management of human resources are dependent on the characteristic features of the individual organisation and its culture. The

67

pervasive nature of culture in terms of how things are done around here and common values, beliefs and attitudes will therefore have a significant effect on organisational processes such as decision-making, design of structure, group behaviour, work organisation, motivation and job satisfaction, and management control.

Rabson (2007:27) suggests that organisational culture constitutes the companys identity By creating a common culture, not only is a sense of pride among staff created, but also a sense of belonging and ownership. Van Rooyen (2006:4-5) suggest that an organisations culture reflects specific expectations, values and traditions of how things should be done, and by whom.

Leaders can reinforce organisational culture through the selection of newcomers to the organisation. Unconsciously, leaders often recruit individuals who are

similar to current organisational members (Nelson & Quick, 2005:372). Desirable behaviour can be reinforced through recruitment and can, consequently, influence commitment.

3.3.4 Effect of recruitment on commitment Recruitment defined Firer (2002:30) defines recruitment as the searching for, and obtaining, potential job candidates in sufficient numbers, and at the right cost, for the organisation to select the most appropriate people to fill its jobs. In addition to job needs, the recruitment activity should be concerned with fulfilling the needs of the job candidates.

68

Swanepoel et al. (2003:259) refer to recruitment as those activities in human resource management which are undertaken in order to attract sufficient job candidates who have the necessary potential, competencies and traits to fill job needs and to assist the organisation in achieving its objectives.

Perspectives on recruitment Human resource needs are based on organisational objectives and strategies, taking into account increase in demand for the organisations products or services (Robbins & Coulter 1999:344-345). Cabot and Steiner (2007:19) found that by developing a strategic human resources plan that fosters a reputation as a great place to work, you attract a more committed workforce. Firer (2002:30-31)

explains that an effective recruitment strategies are not only to attract individuals to the organisation but also to retain them once they are hired. Recruitment is influenced by the internal and external environment, which also influences an organisations business and in turn recruitment strategy. The survival or progress of an organisation depends on its ability to identify, recruit, select, train and retain the right people.

Mengel (2001:32), Managing Director of CHART DBM South Africa and career management specialist, points out that in many situations, employee turnover is due to issues of chemistry or fit within an organisation. Employers are now coming to adopt the strategy of hire for traits, train for skills. According to a study by Harvard University, nearly 80% of turnover is due to hiring mistakes. Poor hiring decisions can cost the organisation up to 90% of the unsuccessful recruits

69

salary. Add to this the cost of disruption and productivity loss, and a poor hiring decision can turn into a very expensive mistake.

Organisations aim to attract and to retain the interest of suitable applicants and to project a positive image of the organisation to outsiders though the application of their recruitment process. The recruiter plays a major role in gaining the

prospective employees commitment to the organisation right from the beginning (Swanepoel et al., 2003:259; 264).

Babb (2006:21) suggests that organisations need to consider the impact of their culture and climate on their ability to attract and retain employees. According to Bywater (2005:27), it is a benefit to the organisations employers brand if the candidates have the perception that they are being taken seriously and that the organisation have a transparent, fair and robust recruitment process. Mullins

(2005:795-796) agrees that the manner in which staff are appointed is a major factor in determining the behaviour and performance of the workforce.

Greenberg and Baron (2003:166-167) contend that recruiting new employees is important not only insofar as it provides opportunities to find people whose values match those of the organisation but also because of the dynamics of the recruitment process itself. Specifically, the more an organisation invests in

someone by working hard to lure him or her to the company, the more the individual is likely to return the same investment of energy by expressing commitment toward the organisation. In other words, companies that show their employees they care enough to work hard to attract them are likely to find those

70

individuals strongly committed to the company The way we are treated by organisation officials during the recruitment process sends strong messages about the extent to which the organisation is interested in us. This interest, in turn, influences our own commitment toward the organisation.

Mullins (2005:795-796) suggests that whatever the nature of the organisation, the effectiveness of its operations and functions inevitably depends very largely upon the employees it employs The manner in which staff are appointed is a major factor in determining the behaviour and performance of the workforce If the organisation is to become the employer of choice the answer does not lie in strong recruitment practices alone. The real response is holistic or systemic getting every part of the organisation in sync with this goal. At the organisational level, it includes looking at all your human resources, human resource development and organisational development systems and strategies to ensure they are working together to create an environment in which the best people will thrive.

Mullins (2005:800-801) found that one of the many adverse consequences of poor recruitment and selection is the possibility of a high level of employee turnover. Recruiting people who are wrong for the organisation can lead to increased labour turnover, increased costs for the organisation, and lowering of morale in the existing workforce. Such people are likely to be discontented, unlikely to give of their best, and end up leaving voluntarily or involuntarily when their unsuitability becomes evident. They will not offer the flexibility and commitment that many organisations seek. Managers and supervisors will have to spend extra time on further recruitment exercises, when what is needed in the first place is a

71

systematic process to assess the role to be filled, and the type of skills and abilities needed to fill it The need is for a planned and systematic approach to recruitment and selection, as indicated in Figure 3.6.

FIGURE 3.6: A systematic approach to recruitment and selection (Mullins, 2005:801)

The challenge for most organisations is to position the company and the job in such as way that the right not all candidates are interested in the opportunity. If this does not happen, the recruitment process may be lost before it begins. Companies with strong corporate identities have proven to recruit more effectively. Organisations also compete for the strongest employment brand due to the

72

benefits that such a brand has to offer. To create such a brand, an organisation needs to focus inwardly on employees, not externally on customers (Forman 2005:54-55).

Newly hired employees must be enhanced and developed. Companies that ignore this function not only risk falling behind, buy they risk losing their newly hired talent (Forman, 2005:77). Ncongwane (2007:34-37) found that human resources

executives stated that the single greatest challenge in workplace management was creating or maintaining their organisations ability to compete for talent. Organisations need to ensure that they are able to attract and retain talent.

Employee behaviour.

development

influences

commitment

and

reinforces

desirable

3.3.5 Effect of development on commitment Development defined Kreitner and Kinicki (2001:57) refer to development as the focus on preparing diverse employees for greater responsibility and advancement. Mullins

(2005:474) defines development as the motivations for self-improvement development of the individual and organisation through training and education.

Perspectives on development Gibson, Ivancevich, and Donnelly (2000:184) found that personal growth of any individual is unique. Individuals experiencing such growth can sense their

development and see how their capabilities are being expanded. By expanding

73

their capabilities employees can maximise or at least satisfy skill potential. Individuals can become dissatisfied with their jobs and organisation if not allowed or encouraged to develop their skills.

Crosby (2000:1) explains that employee commitment is affected by and can be improved through career development activities. Organisations can create

commitment by taking concrete steps to help employees develop their abilities and achieve their potential (Crosby, 2000:20). Ivancevich, Konopaske, and Matteson (2005:167) also suggest that employees bring their needs, aspirations, and hopes to their jobs, and become committed to employers that take concrete steps to help them develop their abilities and achieve their potential.

Robbins (2001:448-451) contends that when individuals feel that the organisation does not care, they withdraw their commitment and energy. It is important,

therefore, that managers demonstrate their interest in the long-term success and growth of their direct reports. Any organisation that allows itself to be a bystander to the development of talent will not be able to remain competitive in this rapidly changing world.

Kinnear and Sutherland (2001:17) assert that development is a crucial focus for employees. Employees place high value on continued learning because that is what is going to keep them marketable. Mengel (2001:33) explains that the irony in retaining good employees is that the more they feel they are able to grow and become more marketable, the more likely they are to stay. The more easily

74

accessible and relevant the growth opportunities you can offer, the greater the likelihood that turnover rates will decline.

Swanepoel et al. (2003:184) suggest that investment in employees should be seen as a means to engendering commitment, rather than as a means of containing cost and imbuing only loyalty. Hellriegel and Slocum (2004:54) point out that

employee commitment can be influence positively when providing an employee with the opportunity for advancement.

Forman (2005:77) suggests that employees expect companies to provide challenging and meaningful development programmes; if these programmes do not exist or are curtailed, then employees may leave to find more fertile pastures . Forman (2005:82) argues that there should be a direct and discernable link between the strategy of the company and development programmes Understanding the overall strategy is an important key to employee commitment.

Forman

(2005:80)

found

that

from

company

perspective,

employee

development programs play an important role in perpetuating company culture, key values, and our way of doing things From an employee perspective, there are four primary outcomes of most employee development programs, as indicated in Figure 3.7.

75

FIGURE 3.7: Outcomes of employee development programmes (Forman, 2005:81)

Employees are more committed to employers who are committed to their longterm career development. In order to create employee commitment, organisation should provide their employees with the experience they needs even craves at each stage of their career. Employee commitment will depend on the employers ability to fulfil the employees personal career aspirations. Commitment is higher among employees who believe that their development needs are met (Ivancevich, Konopaske, & Matteson 2005:166).

The type of human resources strategies and policies is pertinent in encouraging employee development and a learning climate in the organisation. Employees should feel that their efforts to learn and develop are rewarded (Mullins, 2005:402). Employees are looking for employers who can provide them with

growth and learning opportunities. Therefore employers must consistently seek out opportunities to invest in and build employee commitment through extensive training and development programmes (Kheswa, 2006:13). Mullins (2005:422) agrees and states that managers need to demonstrate their commitment to their

76

subordinates by encouraging a climate of learning and self-development. However, Forman (2005:81) is of the opinion that development programmes should be driven by performance needs and, in the broader perspective, on improving performance.

Performance management reinforces desirable behaviour and, consequently, influences commitment.

3.3.6 Effect of performance management on commitment Performance management defined Dubois (2005:3) defines performance as a deliberate and purposeful action or set of actions that an individual takes in order to achieve a desired result or output of some kind that is of value to the individual or to others.

Swanepoel et al. (2003:375) describe performance management as a process which significantly affects organisational success by having managers and employees work together to set expectations, review results and reward performance. As such, performance management can be regarded as an ongoing process that involves the planning, managing, reviewing, rewarding and development of performance.

Forman (2005:109) argues that performance management is the process of assessing, developing and incentivising employees to enhance their skills and capabilities, further their careers and strengthen the organisation. Ivancevich,

77

Konopaske, and Matteson (2005:206) conclude in defining performance as the desired results of behaviour.

Perspectives on performance management Firer (2002:30) contends that performance management involves a series of processes to manage employees performance. It includes a number of

components including work and job design, reward structures, the selection of people to do the work, the training and induction of these people into the way the work is done, the assessment of how employees are doing their work and policies for rewarding and improving performance The results of performance management can provide information, which can be used to improve business.

Swanepoel et al. (2003:375) found that the theoretical foundation of the performance management approach may be operationalised within an integrated cycle of separate but related managerial processes, as illustrated in Figure 3.8.

78

FIGURE 3.8: An integrated performance management cycle (Swanepoel et al., 2005:375)

Swanepoel et al. (2003:375-376) further explain that the concept of performance management is a more broadly framed and integrative view of performance appraisal, where performance ratings are de-emphasised, relative to the planning, reviewing, allocating of resources, and problem solving aspects of that process Performance management is a process of managing behaviour and an organisation intervention strategy.

According to Brennan (2004:50), an effective performance management system is a powerful way to increase employee commitment.

79

Robbins (2005:525) explains that performance evaluation systems influence behaviour. Evaluations provide input into important decisions such as

promotions, transfers, and terminations ... To maximise motivation, people need to perceive that the effort they exert leads to a favourable performance evaluation and that the favourable evaluation will lead to the rewards that they value.

Forman (2005:109) argues that there is both an individual and an organisational side to performance management. For an individual, an effective performance management system provides ongoing feedback on performance and the resulting benefit, reward and development programs that are now provided. For the

organisation, an effective performance management system provides essential information about how employees (as a group) are aligned with organisational strategy and initiatives, and how well organisational objectives are being achieved.

Mullins (2005:490-493) explain that expectancy theories (Vroom, Porter, and Lawler) indicate a strong relationship between motivation and performance. Performance outcomes acquire valence because of the expectation that they will lead to other outcomes as an anticipated source of satisfaction. It is the

relationship between a chosen course of action and its predicted outcome Performance depends not only on the amount of effort exerted but also on the intervening influences of the persons abilities and traits, and their role perceptions. The process of performance management involves a continuous judgement on the behaviour and performance of employees, as illustrated in Figure 3.9.

80

FIGURE 3.9: Basic model of expectancy theory (Mullins, 2005:491)

Dunkel (2007:14) found that employee commitment is a key driver of performance and that human resources can develop measures to track such metrics as employee commitment.

According to Robbins (2001:171-172), performance management and reward strategies are interdependent. Hellriegel and Slocum (2004:153) are of the

opinion that when an employee attains a high level of performance, rewards can become important inducements for the employee to continue to perform at that level. It is evident from the above that reward reinforces desirable behaviour and, consequently, influences commitment.

3.3.7 Effect of reward (and recognition) on commitment Reward defined

81

Rewards can be classified into two broad categories:

extrinsic and intrinsic.

Gibson, Ivancevich, and Donnelly (2000:182) define extrinsic rewards as rewards external to the job, such as pay, promotion, or fringe benefits and intrinsic rewards as those that are part of the job itself, such as the responsibility, challenge, and feedback characteristics of the job.

Hellriegel and Slocum (2004:96) define a reward as an event that a person finds desirable or pleasing.

Perspectives on reward Gibson, Ivancevich, and Donnelly (2000:179) found that the main objectives of reward programs are (1) to attract qualified people to join the organisation, (2) to keep employees coming to work, and (3) to motivate employees to achieve high levels of performance. Gibson, Ivancevich, and Donnelly (2000:186) further

found that researchers and managers agree that extrinsic and intrinsic rewards can be used to motivate job performance If rewards are to motivate: the reward must be valued by the person, and they must be related to a specific level of job performance.

Ivancevich, Konopaske, and Matteson (2005:224) refer to intrinsic rewards as important for the development of employee commitment. Organisations able to meet employees needs by providing achievement opportunities and by recognising achievement when it occurs have a significant impact on commitment.

82

Reward and recognition strategies are used to create employee commitment. When organisations link their performance to employee rewards, employees are likely to be highly committed. A profit-sharing plan is an example of an incentive plan in which employees receive bonuses in proportion to the organisations profitability and employees individual performance (Greenberg & Baron, 2003:165).

Swanepoel et al. (2003:527) argue that the underlying assumption of profitsharing plans is that they increase employee commitment and identification with the organisation and its profit goal and, consequently, lead to increased productivity and cost savings. Profit-sharing plans essentially allow employees to share in the financial success of an organisation by distributing a portion of the profits back to the employees.

Coetzee (2006:42-43) explains that failure to give praise and recognition is the number one cause of dissatisfaction among employees. Boardman (2007:26) is of the opinion that people do what you reward them to do, and therefore, it is important to recognise good performance. recognition produces superior job satisfaction. Sims (2007:12-14) found that The sense of recognition and

achievement the workers experience by being part of things translates into better performance. Theories of positive reinforcement tell us that rewarded behaviours are repeated. Swanepoel et al. (2003:487) contend that the utilisation of rewards can therefore be a very important and powerful tool for shaping and determining work behaviour aimed at attaining the strategic objectives of an organisation. Rewards such as

83

pay and benefits which people gain from an employment relationship are highly important to individuals since they can meet many needs. Satisfaction of needs can range from the most basic human needs for food and shelter to those signs of achievement, status and power. A multitude of possible rewards can be included in an overall reward system with various categories. Common categories are indicated in Figure 3.10.

Intrinsic More responsible Opportunities for personal growth Participation in decision-making More interesting work Autonomy Task completion Extrinsic

Rewards

Financial Performancerelated Commission Performance bonuses Merit pay Incentive schemes Achievement awards Stock ownership Share options Membershiprelated Basic salary Retirement benefits Car allowances Medical aid Thirteenth cheque Subsidised canteen Vacation Profit-sharing Work-life programmes

Non-financial Status rewards Location of office Office furnishings Assignment parking Own secretary Public recognition Commendations Convenience services Social rewards Praise Compliments Friendly greetings Dinner invitation Pat on back Social gatherings

FIGURE 3.10: Types and structure of rewards (Swanepoel et al., 2003:489)

Buchanan and Huczynski (2004:120) point out that rewards such as money and recognition can be used by managers as a positive reinforcement to strengthen

84

desired behaviours and weaken dysfunctional behaviours.

According to De

Chalain (2006:10), employees perceptions can be influenced through rewards.

Robbins (2005:189-190) refers to the expectancy theory, explaining that an employee will be motivated to exert a high level of effort when he or she believes that effort will lead to a good performance appraisal; that a good appraisal will lead to organisational rewards such as a bonus, a salary increase, or a promotion; and that the rewards will satisfy the employees personal goals. It is important that reward is tailored to employees needs, and it is incorrect to assume that all employees want the same thing; differentiating rewards motivates employees.

Organisations use a variety of rewards such as pay, transfers, promotions, praise, and recognition to attract and retain people and to motivate them to achieve their personal and organisational goals. These rewards are considered important by employees and therefore they have a significant effect on behaviour and performance (Ivancevich, Konopaske, and Matteson, 2005:205). The number one driver behind remuneration practices is retention (Harraway, 2006:15). Bussin

(2007:17) agree and stats that research shows that remuneration is 25% of the stay decision.

Mullins (2005:405) explains that how organisations reward their employees makes a statement about what they value. A critical aspect for reward

management is to know how different pay practices affect organisations and their employees behaviour.

85

3.4

SUMMARY

Through the theoretical and literature study in this chapter, the importance of sound human resources strategies and management practices for a committed workforce has become evident. Influences of human resources strategies and management practices on employees attitudes and, ultimately, behaviour have been put into perspective. The theory relates to the cause-effect chain that Human resources need to assist

channels consequences of commitment.

executives to understand the dynamics of commitment within an organisation. The measurement of commitment will be discussed in Chapter 4.

86

CHAPTER 4: METHOD OF RESEARCH

4.1

INTRODUCTION

The purpose of this study is to embark on a quantitative study to measure the impact of the organisation under investigations directed actions to change employee attitudes towards human resources strategies and management practices and, consequently, commitment levels, based on theoretical research.

In this chapter, the research methodology, measuring instrument, and statistical analysis that will be used to support the research objectives are discussed.

4.2

RESEARCH DESIGN

4.2.1 A posteriori quasi-experimental design A posteriori post hoc comparison refers to a comparison of means which has not been pre-planned but allows the researcher to analyse the data concerned to ascertain the differences attributable to various independent variables which have given rise to significant F-ratios. F-ratio is an test statistics formed by the ratio of test mean-square estimates of the population error variance (Shavelson, 1981:469). A posteriori comparison may be defined as a hypothesis testing of the differences among population means carried out following an analysis of variance (Bohrnstedt & Knoke, 1988:234). The basic requirement for using post hoc

comparisons is that the overall F in the analysis of variance must be significant. A quasi-experimental design is a research plan that has some of the validity features

87

of an experimental design. The researcher does not necessarily assign subjects randomly to treatment and control conditions and manipulations of the independent variables are quite difficult, if not impossible under certain circumstances (Dooley, 1990:198).

4.3

SURVEY RESEARCH

Martins (2005:34) explain that the first important aspect of any organisational survey is to understand what should be measured, how and why. According to Robbins (2005:83) the knowledge of employee attitudes can be helpful to managers in attempting to predict employee behaviour the most popular method to obtain this knowledge is through the use of attitude surveys.

Swanepoel et al. (2003:779) explain that employee attitude surveys are systematic research-based ways of collecting and analysing information about what employees feel and think about aspects like their work, their superiors and management, the organisation in general or any other aspect relating to or potentially impacting on their employment relationships. Gibson et al. (2006:489) explain that an attitude survey is a useful diagnostic approach if the potential focus of change is the total organisation.

The Global People Commitment Survey is a recognised employee commitment survey instrument that is owned by Synovate Loyalty, a global market research organisation with representing offices worldwide. The Global People Commitment Survey was used in the year 2005 as well as in the year 2006 and had been

88

developed jointly by Deloitte and Synovate Loyalty (then called Symmetrics Marketing) in 1999.

4.3.1 Survey Research Process The Global People Commitment Survey was used to gather the information. The organisation under investigation sent out an informal letter announcing the study. This study was conducted in the year 2005 and again in the year 2006. Instructions stipulated that the Global People Commitment Survey could be accessed online through a secure website, which could be reached from any computer with online access. Respondents were invited to participate through email and follow a link in the email to reach the online survey. All participants were assured that their responses would remain confidential. In order to preserve and reinforce employee confidentiality, a single common link was sent to all respondents. No individual passwords or PINs were given, as some respondents felt that this would allow the organisation to identify their individual answers.

To measure commitment, respondents were asked to indicate their degree of agreement with a series of statements using a five point Likert scale (strongly agree, agree, neither agree nor disagree, disagree, strongly disagree). Respondents rated the organisations performance in each of the human resource management process areas using the five point evaluative (likert) scale (excellent, very good, good, fair, poor). They rated the process areas overall and across a series of specific attributes.

89

4.4

ADMINISTERING THE QUESTIONNAIRE

Synovate Loyalty processed all results and generated the reports on behalf of the organisation. Separate reports were generated for every service line at a national and regional level. Reports used for this study include the topline reports for the year 2005 and the year 2006, reflecting performance-only data for each question in the survey for the organisation under investigation, a total, and up to 18 subgroups (also called data breaks or cuts) such as male, female, and other demographic groups. The full reports for the year 2005 and the year 2006 are PowerPoint files, which include some performance data as well as analysis such as commitment indices, organisation-wide priorities of interaction areas, vulnerability analysis, stakeholder analysis, attribute priority, and summaries.

The verbatim comments file, which is an Excel file that includes all respondent comments from the open-ended question(s) included in the online survey, was also taken into account. Some demographic information may be included for each comment, but in order to protect employee confidentiality, demographic groups with fewer than 10 respondents cannot be included. Response rates (or

participation rates) were based on the number of respondents divided by the headcount for that demographic. Pautz (2006:5) explains that while there is no hard cut-off for a response rate, most organisations aim for a minimum of 70% employee participation.

Pautz (2006:3) explains that Synovate Loyalty recommends using a five-point excellent-to-poor scale for measurement of performance because the scale is not balanced, but instead provides more favourable rating points (Excellent, Very

90

Good, and Good) than other points (Fair, Poor). We need more granularities at the top end of the scale in order to detect up and down movement more finely. Ratings on this scale indicate the degree of performance-expectations fit, weighted by the value that respondents attach to the specific (underlying) performances Allowing respondents to select Dont Know/Doesnt Apply results in a truer measure of each question, since those who feel they cannot judge a particular item are allowed to skip the question rather than feel forced to guess.

4.5

POPULATION AND SAMPLING

Wegner (2000:4) explains that a population is the collection of all the observations of a random variable under study and about which one is trying to draw conclusions in practice. A population must be defined in very specific terms to include only those sampling units with characteristics that are relevant to the problem. A subset of the population on which observations are made or A sampling unit is the

measurements are taken is referred to as a sample.

item/individual being measured or counted with respect to the random variable(s) under study.

The organisation under investigation is a professional services organisation, specialising in more than one discipline. The focus of this study will be on the national audit service lines, as these service lines are considered the heart of the organisation. The national audit service lines are represented through regional offices in Johannesburg, Pretoria, Cape Town, Natal, and Port Elizabeth, with the biggest office being Johannesburg. Job levels vary from partner to principal,

senior manager, manager, assistant manager, supervisor, trainee accountant, and

91

administrative staff members. The majority of employees from assistant manager upwards are qualified chartered accountants. Trainee accountants serve their

three-year traineeship in the hope of becoming fully qualified chartered accountants.

The target population consisted of 800 and 850 employees for the year 2005 and the year 2006, respectively, within a national auditing environment. The target population included employees within the national audit service line across all job levels. All selected employees were included in the study. The population was

selected by means of profession, regional office, and business unit.

The whole population targeting the strata with characteristics that were relevant to the problem was used as research information. The target population consisted of 800 employees for the year 2005 and 850 employees for the year 2006. The sample sizes of respondents were 564 and 641 for the year 2005 and the year 2006, respectively. Thus, the total sample size was 1 205.

4.6

STATISTICAL METHODS

The purpose of the study was not to determine the level of commitment (as it had already been measured and determined), but rather the impact of directed action to change employees attitudes towards human resources and management practices through comparing the year 2005 commitment results with the year 2006 commitment results. For comparison purposes, statistical tests were applied to determine which changes across all scores were statistically significant.

92

To serve the purpose of this research, descriptive and inferential statistics were used to analyse the data. The data was analysed by using the SAS computer program.

4.6.1 Data analysis The data was provided as summarised percentage tables for each variable (question/statement) with totals for each biographical variable, in Excel format. After these tables (percentages) had been transformed into the correct format for analysis purposes, they were then imported into SAS through the SAS ACCESS module. The actual frequencies per category were determined by multiplying the total by the percentage in each category and rounding the figures. This exercise was necessary in order to do statistical analysis on the data.

Descriptive statistics and comparative statistics for comparing data of the year 2005 with the year 2006 were conducted using the chi-square test.

4.6.2 Descriptive Statistics Descriptive statistics are statistics used to summarise data (Rose-Innes, 2004:2). Wegner (2000:5) states that when large volumes of data have been gathered from a variety of sources, there is a need to organise, summarise and extract the essential information contained within this data for communication to

management. This is the role of Descriptive Statistics. It aims to identify the essential characteristics of a random variable and produce a profile of its behaviour. This is achieved through summary measures.

93

As descriptive statistics, the frequency tables displayed in Sections 5.2 and 5.3 show the distribution of biographical variables/criteria groups and statement responses for the year 2005 and the year 2006.

4.6.2.1 Frequency

Frequency tables and graphs tables and graphs were compiled on the variables

(questions/statements) in order to show the distribution of the responses and any statistical differences between the biographical categories if they occurred. Crossanalysis of variables, where necessary, with statistical probability to indicate the magnitude of these probabilities, was also performed.

4.6.3 Comparative statistics Wegner (2000:7) found that data type is determined by the nature of the random variable which the data represents. In the data comparison study for the research objective, data used is interval-scaled data. Interval-scaled data is associated with quantitative random variables. Differences can be measured between values of a quantitative random variable. A wide range of statistical techniques can be

applied to interval-scaled data, as it possesses numeric (measurement) properties.

Comparative statistics for comparing data of the year 2005 and the year 2006 using the chi-square test are displayed in Section 5.5.3.

94

4.6.3.1

Chi-square test

The chi-square (two-sample) test is probably the most widely used nonparametric test of significance that is useful for tests involving nominal data, but it can be used for higher scales as well, such as cases where persons, events, or objects are grouped into two or more nominal categories such as yes-no or cases A, B, C, or D. The technique is used to test for significant differences between the observed distribution of data among categories and the expected distribution. It must be calculated with actual counts rather than percentages (Cooper & Schindler, 2001:499).

SAS computes a p value (probability value) that measures statistical significance, which automatically incorporates the chi-square values. Results will be regarded as significant if the p values are smaller than 0.05, because this value represents an acceptable level on a 95% confidence interval (p 0.05). The p value is the probability of observing a sample value as extreme as, or more extreme than, the value actually observed.

A difference has statistical significance if there is good reason to believe that the difference does not represent random sampling fluctuations only. Results will be regarded as significant if the p values are smaller than 0.05, because this value is used as cut-off point in most behavioural science research.

4.6.4 Commitment index scores Pautz (2006:9-14) from Synovate Loyalty explain that in FY06, Commitment Index scores ranged from 66 to 84, with 74 being the average The Global People

95

Commitment Survey consists of a commitment index and is numbered from 0 to 100 that represent the level of commitment that respondents have to the organisation. Pautz (2006:9-14) explains that the higher the commitment score, the higher the level of commitment with 74 being the average, a first-time participant in the Global People Commitment Survey, should strive for a score in the low 70s. Organisations with a history of participation in the Global People Commitment Survey should base their CI target on an examination of past performance patterns as well as an assessment of initiatives that might impact people commitment The Strongly Agree / Agree score is used to indicate the level of commitment. responded level. The commitment index is calculated at the individual

4.7

THE QUESTIONNAIRE

Crosby (2000:10) from Synovate Loyalty explains that each item in the questionnaire is mapped to a particular concept in their commitment model as indicated in Figure 4.1.

4.7.1 Synovate Loyalty model of employee commitment Synovate Loyalty (2006:1) explains that the Employee Commitment Model (see Figure 4.1) is based on the concepts of mutual commitment and reciprocity. According to the Synovate Loyalty model, employees have opinions about the organisations performance in key process areas that relate to human resources management and management practices. Those evaluations influence the

96

perception of the organisations commitment to different stakeholder groups, which, in turn, impacts the degree of employee commitment to the organisation.

People Interaction Areas

Perceived Commitment of the Firm to Stakeholders People Orientation

People Commitment to the Firm

Senior Mgmt. of the Firm Management of Change Firm Communications Supervisor/Manager Developing Our People Training and Education Performance Evaluations Recognizing Success Compensation & Benefits Flexibility and Choice Client Relationship Mgmt. Hiring and Staffing Supporting Diversity

Client Orientation

Attitudinal Commitment -Affecting Attachment Switching -Alternatives -Switching Costs

Willingness To Be Proactive

Community Orientation

Intent to Stay

Financial Orientation

FIGURE 4.1: Model of employee commitment (Synovate Loyalty, 2006:1-2)

4.7.1.1

Dimensions of commitment

Synovate Loyalty (2006:1-2) explain that employee commitment is composed of three major elements. Attitudinal commitment refers to the different reasons why employees may feel attached to the organisation. These include: Positive affect: employees like and identify with the organisation, feel a strong sense of belonging, and internalise its goals and values; Switching costs: employees feel that switching jobs would be too costly,

inconvenient, or risky; and Switching alternatives: employees feel locked into the job due to a

perceived lack of alternatives;

97

In terms of behavioural outcomes, employees exhibiting high attitudinal commitment are less prone to voluntary turnover.

4.7.1.2

Perceived commitment of the organisation to stakeholders

Synovate Loyalty (2006:1-2) found that these perceptions reflect the employees impression of who and whats important around here. Their model identifies four critical perceptions in this regard: Employee focus: extent to which the organisation is perceived as committed to its employees, that is, are they valued, respected, empowered, involved? Client focus: extent to which the organisation is externally focused on the needs of its clients/customers. Community focus: extent to which the organisation strives to be a good

corporate citizen; and Financial focus: extent to which the organisation is oriented toward financial results, its shareholders, and the broader financial community.

All four of these perspectives have been shown to influence employee commitment. While companies may emphasise one dimension more than others, successful companies are able to find a balance between the four perspectives. From their standpoint, employees want the organisation to manage its client, community, and financial relations, but not at the expense of employee interests (Synovate Loyalty, 2006:1-2).

Nelson and Quick (2005:87) confirm this in defining commitment as the strength of an individuals identification with an organisation, as well as Robbins

98

(1986:491) who explains that employees behave based on their perceptions of the world rather than its reality. Swanepoel et al. (2003:30) summarise these thoughts and suggest that employee commitment to an organisations success largely depends on the employees perception of the extent to which their own needs and personal objectives will be met through their continual commitment to the success of the organisation.

4.7.1.3

Human resources management process areas

Synovate Loyalty (2006:1-2) suggests that, ultimately, employee commitment depends on the way in which the organisation interacts with the employee in key process areas. The policies, programmes, and practices that are endorsed by management convey who/what is important to the organisation, and actions often speak louder than words. When employees can point to concrete examples of steps that have been taken to secure their commitment, they will be more committed to the organisation. This is the most controllable aspect of the model from a management perspective. An advantage of a process-oriented view of human resources management is that it is consistent with how many organisations allocate their resources (for example, people and budget). When investing

resources to improve specific human resources management processes, management needs to consider the impact this will have on employee commitment (and, ultimately, customer loyalty and business performance).

Symmetrics Marketing Corporation (1999:1-5) explains that unlike most employee opinion surveys in the marketplace today, employee commitment plus goes beyond simply reporting employee attitudes (about their job, boss, compensation,

99

etc.). It is designed to assess, explain, and predict employee behaviours - in particular, their commitment to their job and to their organisation, its values and strategic direction, and its customers.

4.7.2 Synovate Loyalty data analysis and reporting According to Pautz (2006:1-8), the data collected in the survey is first examined and cleaned to ensure that it is usable for reporting (for example, if a respondent selected Dont Know/Does Not Apply to every question in the survey, his/her responses are typically removed from the data). Then the data is filtered by the requested demographic groupings (for example, gender) to obtain performance scores for each question. These filtered results are closely examined to ensure that there are a sufficient number of respondents (10 or more) within each demographic break for reporting. If there are demographic breaks that have fewer than 10 respondents, it might be necessary for Synovate Loyalty to collapse or combine demographic breaks for reporting purposes.

Vulnerability segments are analysed for organisation-wide data and segments. Stakeholder analysis is performed at the organisation-wide level and for segments. Impact scores for all interaction areas and attributes are determined through statistical analyses and are combined with performance scores to create priority rankings for organisation-wide data and segments as requested. Pautz (2006:6-8) explain that performance scores are percentage numbers (from 0% to 100%) representing employee responses to actual survey questions. Priority

assignments of high/medium strength are made via a close examination of the rankings.

100

4.7.2.1

Vulnerability analysis

Pautz (2006:6-10) explains that the vulnerability analysis is a measurement of the relative proportion of respondents that fall into different vulnerability categories. Based on measurement of respondents intent to stay and willingness to be proactive, they are classified into one of the following groups: Truly Dedicated (high intent to stay and high proactive), Traditional Loyal (high intent to stay and low proactive), Strivers (low intent to stay and high proactive), and Disconnected (low intent to stay and low proactive). Analysis is based on responses to 5 of the commitment questions those five questions in the proactive and intent to stay dimensions.

Pautz (2006:6-10) explains that respondents are classified into one of four vulnerability groups based on whether they have high or low willingness to be proactive, and whether they have high or low intent to stay with the organisation. This calculation is done at the individual respondent level. In the vulnerability analysis, the high intent to stay group includes those who strongly agree or agree with the question I plan to work for Company X for many more years. The low intent to stay group includes all other employees, even those who responded dont know or doesnt apply.

4.7.2.2

Impact scores

Pautz (2006:8-12) explains that impact scores represent the strength of association (or relationship) between attributes and an overall interaction area or an interaction area and people commitment. The impact scores are coefficients (which can range from 0.00 to 1.00). For Overall Interaction areas, those with

101

higher impacts have higher correlation with people commitment. For attributes, those with higher impacts have greater influence on the overall rating of the interaction area.

4.7.3 Validity Although the data received was already in a presentation stage (summaries and descriptive statistics), it could be accepted as a true indication of the situation within the organisation, due to reliability testing by Synovate Loyalty making use of item analysis.

4.7.4 Reliability testing A reliability test (Cronbachs Alpha Coefficient) is usually done to determine the reliability of the data. Cronbachs Alpha is an index of reliability associated with the variation accounted for by the true score of the underlying construct. Constructs are the hypothetical variables (statements) that are being measured (Cooper & Schindler, 2001:480-499).

According to Synovate Loyalty (staff commitment survey for the year 2005 and the year 2006), an item analysis to determine the internal consistency was done on the raw data. Due to the fact that only summary tables were received to analyse, the Cronbachs Alpha Coefficients could not be determined.

102

4.8

RESEARCH APPROACH

Specific actions were directed towards less desirable commitment index scores organisation-wide and at a service-line level, in the hope of changing the employees attitudes towards human resources strategies and management practices where a low commitment score was indicated. Directed action

organisation-wide as well as for the national audit service lines will be discussed to assess the impact of the directed actions on the employees attitudes towards human resources strategies and management practices.

4.8.1 Directed actions after 2005 The first commitment survey results were published in November 2005. As

mentioned, the organisation as well as each service line directed specific actions towards less desirable commitment index scores, in the hope of changing the employees attitudes towards human resources strategies and management practices (see Figure 4.2). Organisational directed actions were scoped and Each service line was responsible for

designed at an organisational level.

implementing and incorporating organisational directed actions into its service line directed actions.

103

FIGURE 4.2: Directed actions after 2005 (Own source)

The organisational leadership structure as well as organisational leaders in key positions changed towards the beginning of the year 2006. The organisations strategic themes were amended to include focus areas such as organisational culture change, learning and development, reward, recognition, compensation, and benefits. Audit service line leadership also changed in the Pretoria, Natal, and Johannesburg regions towards the year 2006. The Johannesburg leadership

structure changed with more people-focused roles and a smaller span of control.

Once again, as mentioned before, the organisational culture change initiative was designed as an organisation-wide initiative, and each service line was responsible

104

for implementing and incorporating this initiative, with key strategies and practices such as reward and performance management strategies. The culture change initiative focused on driving desired behaviour, and competence-based models were designed to recognise and reward the desired behaviour in line with the culture change initiative. Each service line was responsible for incorporating these competencies into its performance management model to reward employees accordingly. The audit service line reviewed its performance management

documents and processes across all job levels (excluding trainee accountants) and contracted new performance contracts with each employee. procedures, and guiding principles were amended. Policies,

The trainee accountant

performance management process, procedure, competencies, as well as the measurement system were amended to comply with the newly set SETA (SAICA) requirements and to incorporate organisation-wide initiatives such as the culture change programme.

Compensation and benefits were reviewed per service line, per job level, on an annual basis and benchmarked against the South African market. Benchmarking results were used to determine market competitiveness, salary bands, and the average salary increase percentages per job level and to amend employment benefits (such as medical aid) where needed. Benchmarking results were also taking into account for pre- and post-increase evaluations. The focus of the

organisations compensation and benefit strategy was to promote employee retention and attraction of new hires on an ongoing basis.

105

The organisation placed a lot of emphasis on communication, and various awareness campaigns were launched at an organisational level and per service line to communicate directed actions towards organisational culture change, performance management processes, reward and recognition processes, market benchmarking results, and leadership changes. The audit service line set up

various forums to facilitate regular communication across different job levels towards the year 2006. Regular communication and process owners were the drivers behind change management.

Learning and development programmes were reviewed on an annual basis, with generic organisation-wide offerings and service-line-specific offerings. Each year service lines assessed the learning and development offerings according to their specific needs and requested amendments or new offerings to support their existing and upcoming training needs. As part of the audit service line

management development programme, all managers attended a management assessment centre and a five-day management development programme. Even though this was not a new directed action, it became a key focus area for the audit service lines after the commitment results had reflected the immediate supervisor/manager as a less desired commitment score.

4.8.2 Approach to measure directed actions The organisation under investigation conducted the same commitment study in the year 2006 to measure employee attitudes towards key human resources strategies and management practices after directing specific actions to change employee attitudes (see Figure 4.3). Once again, the Global People Commitment

106

Survey was used as measuring instrument for the purpose of comparison. The selective measuring instrument enabled a comparison between the employee commitment results of the Global People Commitment Survey for the year 2005 and the year 2006 and will, therefore, be able to provide the necessary information to research the study objective. The target population consisted of 800 and 850 employees for the year 2005 and the year 2006, respectively, within a professional services organisation in the national auditing service lines. The impact of

organisation-wide and service line directed action will only be assessed for the defined target population.

FIGURE 4.3: Approach to measure directed actions (Own source)

The study was conducted to determine whether the organisations directed action had the desirable effect of changing employees attitudes towards human resources and management practices (see Figure 4.3) and, therefore, of

107

ultimately increasing employee commitment, as argued through the theoretical research in Chapter 2 and Chapter 3 of this document. To assess the impact of directed actions, hypothetical variables (commitment statements) of the less desirable commitment scores will be assessed, and only variation will be accounted for based on a comparison of the data for the year 2005 and the year 2006.

4.9

SUMMARY

The purpose of the study was not to determine the level of commitment (as it had already been done and the result was known), but rather the impact of directed action to change employees attitudes towards human resources and management practices through comparing the year 2005 commitment results with the year 2006 commitment results.

The practical process of the measurement of commitment was discussed in this chapter. The Global People Commitment Survey that had been developed jointly by Deloitte and Synovate Loyalty (then called Symmetrics Marketing) in 1999 was discussed as measuring tool and the reliability and validity tested by Synovate Loyalty.

108

CHAPTER 5: PRESENTATION OF RESULTS

5.1

INTRODUCTION

The aim of this chapter is to present the results of the survey data collected. Through theoretical research, it can be argued that human resources strategies and management practices influence employee commitment. The effect of

specific human resources strategies and management practices on employee commitment was determined by comparing the results of the Global People Commitment Survey for the year 2005 with those for the year 2006. Descriptive statistics and frequency tables show the distribution of biographical variables, criteria groups and statement responses for the year 2005 and the year 2006. Comparative statistics compare data for the year 2005 with the year 2006, making use of the Chi-Square test.

5.2

DESCRIPTIVE STATISTICS FOR BIOGRAPHICAL VARIABLES

Table 5.1 shows all the biographical variables in the survey for the year 2005 and the year 2006, with the frequencies in each category and the percentage out of total surveys.

109

TABLE 5.1: Biographical distribution

Variables Categories Frequency 2005 Percentage out of sample total 42.3% 18.1% 14.9% 17.4% 7.3% 10.1% 15.8% 2.0% 65.2% 6.9% 50.7% 49.3% 17.7% 19.2% 66.1% 70.4% 9.0% 20.6% Frequency 2006 Percentage out of sample total 39.0% 17.6% 13.1% 24.5% 5.8% 11.1% 17.8% 2.8% 60.1% 8.1% 52.4% 47.6% 18.0% 24.0% 58.0% 66.7% 10.0% 23.3%

Biographical variables/sort criteria according to audit 1. Area Johannesburg Pretoria Cape Town KwaZulu-Natal (Durban, PMB, Richards Bay) Port Elizabeth/East London Partner Principal/associate/senior manager/ manager Assistant manager/supervisor/(senior) consultant/(senior) specialist Trainee accountant/intern Support/administrative/general staff Male Female African black Coloured/Indian White 5. Tenure < 3 years 3-5 years 6 years + 238 102 84 98 41 57 89 11 368 39 286 278 82 107 369 397 51 116 250 113 84 157 37 71 114 18 384 52 334 304 115 153 370 427 64 149

2. Level

3. Gender 4. Race

The area variable reflects the number of respondents (frequency) who completed the survey per regional area for the year 2005 and the year 2006 and the percentage they represent out of the total sample group. The Johannesburg and Pretoria regions increased in number of respondents in the year 2006; however, their percentage of representation out of the total sample group declined in the year 2006. The Cape Town number of respondents in the year 2005 and the year 2006 remained unchanged; however, their percentage of representation out of the total sample group declined in the year 2006. KwaZulu-Natal increased in number of respondents in the year 2006, as well as in their percentage of representation out of the total sample group. Port Elizabeth/East Londons number of

respondents decreased in the year 2006, and so did their percentage of representation out of the total sample group.

110

The level variable reflects the number of respondents (frequency) per job level who completed the survey for the year 2005 and the year 2006 and the percentage they represent out of the total sample group. The partner, principal/ associate/senior manager/manager, assistant manager/supervisor/senior

consultant/consultant, and support/administrative/general staff job levels increased in number of respondents in the year 2006; so did their percentage of representation out of the total sample group. The trainee accountant/intern job level decreased in number of respondents in the year 2006; so did their percentage of representation out of the total sample group.

The gender variable reflects the number of respondents (frequency) per gender who completed the survey for the year 2005 and the year 2006 and the percentage they represent out of the total sample group. The male gender

increased in number of respondents in the year 2006; so did their percentage of representation out of the total sample group. The female gender as well as their percentage of representation out of the total sample group decreased.

The race variable reflects the number of respondents (frequency) per equity group who completed the survey for the year 2005 and the year 2006 and the percentage they represent out of the total sample group. The African black and Coloured/Indian racial groups increased in number of respondents in the year 2006; so did their percentage of representation out of the total sample group. The white race group had a slight increase in number of respondents in the year 2006; however, their percentage of representation out of the total sample group declined.

111

The tenure variable reflects the number of respondents (frequency) per number of years of service who completed the survey for the year 2005 and the year 2006 and the percentage they represent out of the total sample group. The > 3 years of service group increased in number of respondents in the year 2006; however, their percentage of representation out of the total sample group declined. The 3-5 years and 6 years + of service groups increased in number of respondents in the year 2006; so did their percentage of representation out of the total sample group.

It is important to measure variables in biographical distributions, as a significant change of people movement may affect the outcome of a study and also the internal validity. The biographical variables (criteria groups, as they are called in the Global People Commitment Survey) did not differ significantly between the two years. In the absence of significant changes, it can be accepted that the

distributions of the biographical variables are more or less similar for the two years.

5.3

DESCRIPTIVE STATISTICS FOR VARIABLES UNDER INVESTIGATION

Table 5.2 shows all the variables (questions/statements) under investigation in the survey for the year 2005 and the year 2006, with the calculated frequencies in each category and the percentage out of the total surveys. Categories refer to the survey rating scale. Frequency refers to the number of respondents per category. Percentage out of total refers to the percentage of respondents per category per variable (question/statement). This table will be used to compare hypothetical variables (commitment statements) and assess variations based on a comparison between the data for the year 2005 and the year 2006. The purpose of descriptive

112

statistics and frequency tables is to show the distribution of statement responses for the year 2005 and the year 2006.

TABLE 5.2: Variables under investigation

Variables Categories Frequency 2005 118 316 85 34 11 106 273 128 39 11 Percentage out of total 20.9% 56.0% 15.1% 6.0% 2.0% 19.0% 49.0% 23.0% 7.0% 2.0% Frequency 2006 135 365 83 45 13 115 313 147 38 19 Percentage out of total 21.1% 56.9% 13.0% 7.0% 2.0% 18.2% 49.5% 23.3% 6.0% 3.0%

General feelings about the organisation A1. I feel a strong sense of Strongly agree belonging to Company X. Agree Neither agree nor disagree Disagree Strongly disagree A4. The reason I prefer Strongly agree Company X to others is Agree because of what it stands Neither agree for, that is, its values and nor disagree beliefs. Disagree Strongly disagree Organisational leadership C1. Overall rating of Strongly agree organisational leadership is Agree positive. Neither agree nor disagree Disagree Strongly disagree Management of change C2. Overall rating of the Strongly agree organisations management Agree of change is positive. Neither agree nor disagree Disagree Strongly disagree Organisational communication C3. Overall rating of the Strongly agree organisations Agree communication with its Neither agree people is positive. nor disagree Disagree Strongly disagree Your immediate supervisor/manager(s) C4. Overall rating of your Strongly agree immediate supervisor/ Agree manager(s) is positive. Neither agree nor disagree Disagree Strongly disagree Developing our people C5. Overall rating of the Strongly agree organisation in developing Agree

67 234 195 50 6

12.1% 42.4% 35.3% 9.1% 1.1%

70 285 209 63 6

11.0% 45.0% 33.0% 10.0% 1.0%

39 195 222 78 22

7.0% 35.1% 39.9% 14.0% 4.0%

44 224 236 93 25

7.1% 36.0% 37.9% 15.0% 4.0%

56 202 219 62 22

10.0% 36.0% 39.0% 11.1% 3.9%

70 210 255 83 13

11.1% 33.3% 40.4% 13.2% 2.1%

56 184 190 100 28

10.0% 33.0% 34.1% 17.9% 5.0%

64 211 211 115 32

10.1% 33.3% 33.3% 18.2% 5.1%

56 191

9.9% 33.7%

70 204

11.0% 32.0%

113

Variables our people is positive.

Categories Neither agree nor disagree Disagree Strongly disagree Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

Frequency 2005 219 79 22

Percentage out of total 38.6% 13.9% 3.9%

Frequency 2006 274 70 19

Percentage out of total 43.0% 11.0% 3.0%

Learning and education C6. Overall rating of the learning and education that the organisation provides is positive.

124 253 146 34 6

22.0% 44.9% 25.9% 6.0% 1.1%

120 285 178 44 6

19.0% 45.0% 28.1% 7.0% 1.0%

Performance management C7. Overall rating of the performance management process is positive.

22 129 207 129 73

4.0% 23.0% 37.0% 23.0% 13.0%

32 165 260 120 57

5.1% 26.0% 41.0% 18.9% 9.0%

Recognising success C8. Overall rating of the organisation in recognising success is positive.

33 128 216 139 39

6.0% 23.1% 38.9% 25.0% 7.0%

32 158 258 132 57

5.0% 24.8% 40.5% 20.7% 9.0%

Compensation and benefits C9. Overall rating of Strongly agree compensation and benefits Agree is positive. Neither agree nor disagree Disagree Strongly disagree Hiring and staffing C12a. The organisation is Strongly agree able to attract good people. Agree Neither agree nor disagree Disagree Strongly disagree C12d. The organisation is Strongly agree able to keep the best people Agree with the organisation. Neither agree nor disagree Disagree Strongly disagree C12f. The organisation Strongly agree develops and communicates Agree clear job expectations. Neither agree nor disagree Disagree Strongly disagree

22 88 166 182 94

4.0% 15.9% 30.1% 33.0% 17.0%

32 101 239 170 88

5.1% 16.0% 37.9% 27.0% 14.0%

73 212 195 61 17 28 105 167 139 122 28 139 228 122 39

13.1% 38.0% 35.0% 10.9% 3.0% 5.0% 18.7% 29.8% 24.8% 21.8% 5.0% 25.0% 41.0% 21.9% 7.0%

69 233 233 69 19 25 119 188 144 150 32 164 272 114 51

11.1% 37.4% 37.4% 11.1% 3.0% 4.0% 19.0% 30.0% 23.0% 24.0% 5.1% 25.9% 43.0% 18.0% 8.1%

114

There is no significant difference in the distribution of statement responses between the year 2005 and the year 2006 for these questions: (A1) I feel a strong sense of belonging to Company X; (A4) The reason I prefer Company X to others is because of what it stands for, that is, its values and beliefs; (C1) Overall rating of organisation leadership is positive; (C2) Overall rating of the organisations management of change is positive; (C3) Overall rating of the organisations communication with its people is positive; (C4) Overall rating of your immediate supervisor/manager(s) is positive; (C6) Overall rating of the learning and education that the organisation provides is positive; (C12a) The organisation is able to attract good people; and (C12d) The organisation is able to keep the best people with the organisation.

There seems to be a noticeable difference in the distribution of statement responses between the year 2005 and the year 2006 for these questions: (C5) Overall rating of the organisation in developing our people is positive the percentage of responses in the Neither category increased by 4.4% in the year 2006; (C7) Overall rating of the performance management process is positive the percentage of responses in the Agree and Neither categories increased, on average, by 4% in the year 2006, and the percentage of responses in the Disagree and Strongly disagree categories decreased, on average, by 4% in the year 2006; (C8) Overall rating of the organisation in recognising success is positive the percentage of responses in the Disagree category decreased by 4.3% in the year 2006; (C9) Overall rating of compensation and benefits is positive the percentage of responses in the Neither category increased by 7.8% in the year 2006, and the percentage of responses in the Disagree and Strongly

115

disagree categories decreased by 6% and 3% in the year 2006; and (C12f) The organisation develops and communicate clear job expectations the percentage of responses in the Disagree category decreased by 3.9% in the year 2006, with a slight increase in the Neither category. The level of significance in the percentage of responses between the year 2005 and the year 2006 will be determined through chi-square statistics (please see Section 5.5.3).

The Neither category has increased for nine questions out of 14 between the year 2005 and the year 2006. The average of the Neither category is 33% for the year 2005 and 34.4% for the year 2006, with eight questions out of 14 above 35% for the year 2005 and the year 2006.

5.4

COMPARATIVE STATISTICS

The comparative statistics compare data for the year 2005 with that for the year 2006 by making use of the chi-square test. The biographical variables (criteria groups, as they are called in the Global People Commitment Survey) did not differ significantly between the two years. Thus any statistical differences that occur in the statements cannot be attributed to the biographical variables.

When comparing the total responses of the year 2005 and the year 2006, performance management (p = 0.0401) and compensation and benefits (p = 0.0223) were the only statements where there was a statistically significant movement from Disagree to Neither and Agree. To determine which criteria groups had a significant movement, the comparison was repeated for each criteria

116

group. Table 5.3 shows the criteria groups that had a statistically significant shift (p < 0.05) from Disagree to Neither and Agree. Chi-square (value and

probability) statistics were done between the two years for each criteria group to draft comparison tables.

TABLE 5.3: Comparison statistics for criteria grouping

Variables Criteria group Categories Frequency 2005 Percentage out of total Frequency 2006 Percentage out of total

Performance management C7. Overall rating Cape Town of the performance management process is positive. KwaZuluNatal Trainee

Female

African

Coloured/ Indian < 3 years

Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree Agree Neither Disagree

11 36 35 23 32 43 92 125 151 72 96 105 18 21 41 27 28 52 99 138 158 25 22 32 22 38 45 44 61 129 47 97 216 49 83 137 14 13 51

13.4% 43.9% 42.7% 23.5% 32.7% 43.9% 25.0% 34.0% 41.0% 26.4% 35.2% 38.5% 22.5% 26.2% 51.2% 25.2% 26.2% 48.6% 25.1% 34.9% 40.0% 31.7% 27.8% 40.5% 21.0% 36.2% 42.9% 18.8% 26.1% 55.1% 13.1% 26.9% 60.0% 18.2% 30.9% 50.9% 17.9% 16.7% 65.4%

25 33 25 51 68 37 111 169 99 96 123 81 39 45 29 52 59 43 135 187 106 33 50 28 53 51 47 57 87 105 49 155 174 48 131 119 13 40 59

30.1% 39.8% 30.1% 32.7% 43.6% 23.7% 29.3% 44.6% 26.1% 32.0% 41.0% 27.0% 34.5% 39.8% 25.7% 33.8% 38.3% 27.9% 31.5% 43.7% 24.8% 29.7% 45.1% 25.2% 35.1% 33.8% 31.1% 22.9% 34.9% 42.2% 13.0% 41.0% 46.0% 16.1% 44.0% 39.9% 11.6% 35.7% 52.7%

Recognising success C8. Overall rating African of the organisation in recognising success is positive. Coloured/ Indian Compensation and benefits C9. Overall rating Johannesburg of compensation and benefits is positive. Trainee

Female

African

117

Variables

Criteria group Coloured/ Indian < 3 years

Categories Agree Neither Disagree Agree Neither Disagree

Frequency 2005 17 26 62 54 108 224

Percentage out of total 16.2% 24.8% 59.0% 14.0% 28.0% 58.0%

Frequency 2006 31 56 65 59 171 193

Percentage out of total 20.4% 36.8% 42.8% 14.0% 40.4% 45.6%

On the overall rating of performance management, the criteria group Cape Town experienced a movement from Disagree to Neither to Agree between the year 2005 and the year 2006. The criteria groups KwaZulu-Natal, trainees, female, African, Coloureds, and tenure < 3 years experienced a movement from Disagree to Agree between the year 2005 and the year 2006. However, the category Neither increased.

On the overall rating of the organisation in recognising success, for the criteria group Africans, the Neither category increased; while there was a movement away from Disagree, there was also a movement away from Agree between the year 2005 and the year 2006. The criteria group Coloureds and Indians had a movement from Disagree to Neither to Agree between the year 2005 and the year 2006.

On the overall rating of compensation and benefits, the criteria groups Johannesburg and Coloureds/Indians experienced a movement from Disagree to Agree between the year 2005 and the year 2006. Neither increased. However, the category

For the criteria groups trainee and tenure > 3 years, the

Neither category increased; while there was movement away from Disagree, Agree remained stable between the year 2005 and the year 2006. For the criteria groups female and African, the Neither category increased; while there was a

118

movement away from Disagree, there was also a movement away from Agree between the year 2005 and the year 2006.

As

explained previously, performance management (p =

0.0401) and

compensation and benefits (p = 0.0223) were the only statements that had a statistically significant movement from Disagree to Neither and Agree between the year 2005 and the year 2006. Criteria groups with significant movements that had a statistically significant shift (p < 0.05) from Disagree to Neither and Agree are included in Table 5.3.

Note must be taken that some of the cells had zero expected counts for some of the statements and that the chi-square test might not be valid in those cases.

5.5

COMMITMENT INDEX SCORES

The commitment index is calculated at the individual respondent level. The year 2006 was the second year that Company X conducted the Global People Commitment Survey. Only the Strongly agree and Agree scores are used to indicate the level of commitment.

5.5.1 Overall commitment index scores Table 5.4 reflects the overall commitment scores achieved per region, job level, gender, race and tenure. The organisation did achieve an overall commitment score of 74 for the year 2005 and 75 for the year 2006 as indicated in Table 5.4.

119

TABLE 5.4: Overall commitment index scores (Synovate Loyalty)

People Commitment Survey 2006 South Africa: Audit People Commitment Survey 2005 South Africa: Audit

Note: Groups with a base (total answering) below 10 respondents have not been reported. Commitment Index (0 100 scale) 74 72 78 73 73 80 85 76 77 71 77 74 74 71 74 76 72 74 80 Commitment Index (0 100 scale) 75 72 80 76 75 79 87 79 76 72 77 76 74 72 74 76 72 77 84

Commitment index Employee Commitment Sort Criteria:

Total Answering 641 250 113 84 157 37 71 114 18 384 52 334 304 115 153 370 427 64 149

Total Answering 564 238 102 84 98 41 57 89 11 368 39 286 278 82 107 369 397 51 116

JHB Pretoria Cape Town KZN (Durban, PMB, Richards Bay) Port Elizabeth / East London Partner Principal / Associate / Senior Manager / Manager

Asst Mnr / Super / (Snr) Con / (Snr) Spec Trainee Accountant / Intern Support / Administrative / General staff Male Female African Black Coloured / Indian White Tenure less than 3 years Tenure 3 - 5 years Tenure 6 years +

The partner, principal/associate/senior manager, and tenure 6 years + commitment index scores are noticeable higher than the average and overall commitment index scores.

With reference to the purpose of this study (please refer to Section 1.2), results will only focus on the less desired commitment index scores where action was directed (please refer to Section 4.6.4 and Section 4.8) to change employees attitudes towards human resources strategies and management practices between the year 2005 and the year 2006.

120

5.5.2 Less desirable commitment index scores under investigation Table 5.5 reflects the less desirable commitment index scores per question under investigation between the year 2005 and the year 2006. The organisation directed specific actions (see Section 4.8) towards the less desired commitment index scores questions in the hope of changing employees attitudes towards human resources strategies and management practices.

TABLE 5.5: Less desirable commitment index scores per question under investigation

121

5.5.3 Comparison tables and chi-square statistics The chi-square technique is used to test for significant differences between the observed distributions of data among categories. It is calculated on the actual counts.

Chi-square value and probability between the two years for all the respondents

122

The organisation directed actions towards less desirable commitment scores in the hope of changing employee attitudes towards human resources strategies and management practices. The study was conducted to determine whether the

organisations directed action had the desirable effect of changing employees attitudes towards human resources and management practices. To assess the impact of directed actions, hypothetical variables (commitment statements) of the less desirable commitment scores will be assessed, and only variation will be accounted for based on a comparison between data for the year 2005 and that for the year 2006.

Results will be regarded as significant if the p values are smaller than 0.05, because this value represents an acceptable level on a 95% confidence interval (p 0.05). The chi-square results below show the comparisons made between the year 2005 and the year 2006. They give the actual frequencies and the

percentage out of the total number of respondents, which is the percentage of respondents in that category; for instance, respondents who agreed = 434 out of the great total = 564 (2005) + 642 (2006) = 1 205. The row percentages are the number in that category out of the total for that year; for example, it is the percentage of 434 respondents who agreed in the year 2005 out of the total number of respondents (564) in that year. The column percentages show the percentage, for instance, those for the year 2005 who agreed out of the total number of those who agreed, for example, the percentage of 434 out of 934. The chi-square results are used to compare the response over the period of two years. They also reflect the test statistics to show whether there was a significant difference between the two years or not.

123

Probability is the p value as previously described in this document. Value is the chi-square value calculated from the frequency table and looked up in a table according to DF (degrees of freedom), which is calculated by (rows - 1) * (columns - 1) = (2 - 1) * (3 - 1) = 1 * 2 = 2.

The Strongly agree and Agree, Disagree and Strongly disagree are aggregated as in chi-square results below, the reason being that, in some cases, the expected count in the cells was less than 0.05 (< 0.05), which could relate to an invalid chi-square result.

Comparison of the year 2005 and the year 2006 Results will only be regarded as statistically significant (different) if the p values are smaller than 0.05, because this value represents an acceptable level on a 95% confidence interval (p 0.05).

The chi-square results show the comparisons made between the year 2005 and the year 2006. As mentioned before, the chi-square results are used to compare the response over the period of two years. They also reflect the test statistics to show whether there was a significant difference between the two years or not.

TABLE 5.6: Chi-square comparisons

124

QUESTION=A1

QUESTION=A4 A4. The reason I prefer Company X to others is because of what it stands for, that is, its values and beliefs? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 379 128 50 557 31.88% 10.77% 4.21% 46.85% 68.04% 22.98% 8.98% 46.96% 46.55% 46.73% 2006 428 147 57 632 36.00% 12.36% 4.79% 53.15% 67.72% 23.26% 9.02% 53.04% 53.45% 53.27% Total 807 275 107 1189 67.87% 23.13% 9.00% 100.00% Statistic DF Value Prob Chi-Square 2 0.0151 0.9925 Sample Size = 1189 QUESTION=C2 C2. Overall rating of the firms management of change is positive? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 234 222 100 556 19.86% 18.85% 8.49% 47.20% 42.09% 39.93% 17.99% 46.61% 48.47% 45.87% 2006 268 236 118 622 22.75% 20.03% 10.02% 52.80% 43.09% 37.94% 18.97% 53.39% 51.53% 54.13% Total 502 458 218 1178 42.61% 38.88% 18.51% 100.00% Statistic DF Value Prob Chi-Square 2 0.5208 0.7707 Sample Size = 1178 QUESTION=C4 C4. Overall rating of your immediate supervisor / manager(s) is positive? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 240 190 128 558 20.15% 15.95% 10.75% 46.85% 43.01% 34.05% 22.94% 46.60% 47.38% 46.55% 2006 275 211 147 633 23.09% 17.72% 12.34% 53.15% 43.44% 33.33% 23.22% 53.40% 52.62% 53.45% Total 515 401 275 1191 43.24% 33.67% 23.09% 100.00% Statistic DF Value Prob Chi-Square 2 0.0685 0.9663 Sample Size = 1191

A1. I feel a strong sense of belonging to Company X? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 434 85 45 564 36.02% 7.05% 3.73% 46.80% 76.95% 5.07% 7.98% 46.47% 50.60% 43.69% 2006 500 83 58 641 41.49% 6.89% 4.81% 53.20% 78.00% 12.95% 9.05% 53.53% 49.40% 56.31% Total 934 168 103 1205 77.51% 13.94% 8.55% 100.00% Statistic DF Value Prob Chi-Square 2 1.4138 0.4932 Sample Size = 1205 QUESTION=C1

C1. Overall rating of firm leadership is positive? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 301 195 56 552 25.40% 16.46% 4.73% 46.58% 54.53% 35.33% 10.14% 45.88% 48.27% 44.80% 2006 355 209 69 633 29.96% 17.64% 5.82% 53.42% 56.08% 33.02% 10.90% 54.12% 51.73% 55.20% Total 656 404 125 1185 55.36% 34.09% 10.55% 100.00% Statistic DF Value Prob Chi-Square 2 0.7491 0.6876 Sample Size = 1185 QUESTION=C3 C3. Overall rating of the firms communication with its people is positive? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 258 219 84 561 21.64% 18.37% 7.05% 47.06% 45.99% 39.04% 14.97% 47.96% 46.20% 46.67% 2006 280 255 96 631 23.49% 21.39% 8.05% 52.94% 44.37% 40.41% 15.21% 52.04% 53.80% 53.33% Total 538 474 180 1192 45.13% 39.77% 15.10% 100.00% Statistic DF Value Prob Chi-Square 2 0.3242 0.8504 Sample Size = 1192

125

QUESTION=C5 C5. Overall rating of the firm in developing our people is positive? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 247 219 101 567 20.51% 18.19% 8.39% 47.09% 43.56% 38.62% 17.81% 47.41% 44.42% 53.16% 2006 274 274 89 637 22.76% 22.76% 7.39% 52.91% 43.01% 43.01% 13.97% 52.59% 55.58% 46.84% Total 521 493 190 1204 43.27% 40.95% 15.78% 100.00% Statistic DF Value Prob Chi-Square 2 4.2376 0.1202 Sample Size = 1204 QUESTION=C7 C7. Overall rating of the performance management process is positive? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 151 207 202 560 12.65% 17.34% 16.92% 46.90% 26.96% 36.96% 36.07% 43.39% 44.33% 53.30% 2006 197 260 177 634 16.50% 21.78% 14.82% 53.10% 31.07% 41.01% 27.92% 56.61% 55.67% 46.70% Total 348 467 379 1194 29.15% 39.11% 31.74% 100.00% Statistic DF Value Prob Chi-Square 2 9.1936 0.0101* Sample Size = 1194 QUESTION=C9

QUESTION=C6 C6. Overall rating of the learning and education the firm provides is positive? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 377 146 40 563 31.52% 12.21% 3.34% 47.07% 66.96% 25.93% 7.10% 48.21% 45.06% 44.44% 2006 405 178 50 633 33.86% 14.88% 4.18% 52.93% 63.98% 28.12% 7.90% 51.79% 54.94% 55.56% Total 782 324 90 1196 65.38% 27.09% 7.53% 100.00% Statistic DF Value Prob Chi-Square 2 1.1812 0.554 Sample Size = 1196 QUESTION=C8 C8. Overall rating of the firm in Recognizing Success is positive? Frequency /Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 161 216 178 555 13.51% 18.12% 14.93% 46.56% 29.01% 38.92% 32.07% 45.87% 45.57% 48.50% 2006 190 258 189 637 15.94% 21.64% 15.86% 53.44% 29.83% 40.50% 29.67% 54.13% 54.43% 51.50% Total 351 474 367 1192 29.45% 39.77% 30.79% 100.00% Statistic DF Value Prob Chi-Square 2 0.8101 0.6669 Sample Size = 1192 QUESTION=C12A

C9. Overall rating of compensation and benefits is positive? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 110 166 276 552 9.31% 14.04% 23.35% 46.70% 19.93% 30.07% 50.00% 45.27% 40.99% 51.69% 2006 133 239 258 630 11.25% 20.22% 21.83% 53.30% 21.11% 37.94% 40.95% 54.73% 59.01% 48.31% Total 243 405 534 1182 20.56% 34.26% 45.18% 100.00% Statistic DF Value Prob Chi-Square 2 10.8417 0.0044** Sample Size = 1182

C12A. The firm are able to attract good people? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 285 195 78 558 24.13% 16.51% 6.60% 47.25% 51.08% 34.95% 13.98% 48.55% 45.56% 46.99% 2006 302 233 88 623 25.57% 19.73% 7.45% 52.75% 48.48% 37.40% 14.13% 51.45% 54.44% 53.01% Total 587 428 166 1181 49.70% 36.24% 14.06% 100.00% Statistic DF Value Prob Chi-Square 2 0.8938 0.6396 Sample Size = 1181

126

QUESTION=C12D C12D. The firm are able to keep the best people with the firm? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 133 167 261 561 11.20% 14.07% 21.99% 47.26% 23.71% 29.77% 46.52% 48.01% 47.04% 47.03% 2006 144 188 294 626 12.13% 15.84% 24.77% 52.74% 23.00% 30.03% 46.96% 51.99% 52.96% 52.97% Total 277 355 555 1187 23.34% 29.91% 46.76% 100.00% Statistic DF Value Prob Chi-Square 2 0.0821 0.9598 Sample Size = 1187

QUESTION=C12F C12F. The firm develops and communicate clear job expectations? Frequency / Percent / Row Pct Col Pct Agree Neither Disagree Total 2005 167 228 161 556 14.05% 19.18% 13.54% 46.76% 30.04% 41.01% 28.96% 46.01% 45.60% 49.39% 2006 196 272 165 633 16.48% 22.88% 13.88% 53.24% 30.96% 42.97% 26.07% 53.99% 54.40% 50.61% Total 363 500 326 1189 30.53% 42.05% 27.42% 100.00% Statistic DF Value Prob Chi-Square 2 1.2566 0.5335 Sample Size = 1189

The results of the comparison between the year 2005 and the year 2006 are not regarded as statistically significant (different) in all the questions, except for questions C7 and C9, where the p value is less than 0.05. The results of the comparison between the year 2005 and the year 2006 are regarded as statistically significant (different), as the p values are smaller than 0.05. This value represents an acceptable level on a 95% confidence interval (p 0.05).

5.6

DISCUSSION AND CONCLUSIONS

Although there may have been a positive shift in employees attitudes towards some of the statements, from Disagree to Neither and Agree from the year 2005 to the year 2006, it was not statistically significant. However, performance management and compensation and benefits were statistically significant and were positively affected by human resources strategies and management practices in an effort to improve commitment in the organisation (see Section 4.8). There may be other causes for the indication of improved attitudes, but that can only be determined by further studies. Note must be taken that some of the

significant shifts are from Disagree to Neither, and this may confuse the issue in

127

terms of whether this is positive for the organisation or whether it might be that the human resources strategies and management practices made people more unsure. It is also possible that it is too early to reap any benefits from improved management practices and human resources strategies.

The majority of criteria groups indicated a more positive attitude towards variables/statements in the year 2006, with the Disagree category decreasing and the Neither category increasing. The Neither category percentages are The high

noticeably high in relation to the other category percentages.

percentages in the Neither category may reflect a disengaged workforce. This could be a classical case of Herzbergs motivational theory. According to

Herzberg, if the hygiene factors are absent, it could cause dissatisfaction. Proper attention to the hygiene factors will tend to prevent dissatisfaction, but does not, by itself, create a positive attitude or motivation to work. The opposite of

dissatisfaction is not satisfaction but, simply, no dissatisfaction (Mullins, 2005:485). Taking Herzbergs theory into account, the high Neither category may reflect that employees are not necessarily dissatisfied (for example, disagreeing with the variable/statement), but that they are not satisfied either (for example, a positive attitude towards the variable/statement).

The biographical variables had the same distribution for both the years. Thus any conclusion made for difference between the years cannot be explained by difference between the biographical variables, because there were no differences.

128

The differences in the statements performance management and compensation and benefits can be explained by a real shift due to changes in responses between the two years. These changes could be due to management practices and human resources strategies that had been employed since the year 2005 (see Section 4.8).

5.7

SUMMARY

The objective of the study was to determine whether the organisations directed action had had the desirable effect of changing employees attitudes towards less desirable human resources and management practices. In Chapter 5, the results of the statistical analysis were presented. Conclusions drawn were validated by the statistical analysis and explanations of all variables, and their outcomes were compiled. Gross analysis of variables was made, where necessary, with statistical probability attached to indicate the magnitude of these probabilities.

The biographical variables (criteria groups, as they are called in the Global People Commitment Survey) did not differ significantly between the two years. In the absence of significant changes, it can be accepted that the distributions of the biographical variables were more or less similar for the two years.

When comparing the total responses of the year 2005 with the year 2006, performance management (p = 0.0401) and compensation and benefits (p = 0.0223) were the only statements where there was a statistically significant movement from Disagree to Neither and Agree. To determine which criteria groups had a positive movement, the comparison was repeated for each criteria

129

group. The criteria groups that had a statistically significant shift in their rating of overall performance management were Cape Town, KwaZulu-Natal, trainees, females, Africans, Coloureds/Indians, and tenure < 3 years. The criteria groups that had a statistically significant shift in their rating of overall compensation and benefits were Johannesburg, trainees, females, Africans, Coloureds/Indians, and tenure < 3 years.

Recommendations were identified for future success. The recommendations are presented in Chapter 6.

130

CHAPTER 6: RESULTS AND RECOMMENDATIONS

6.1

INTRODUCTION

The studys problem statement postulated that despite the focus on, and consequences of, commitment, executives find it difficult to influence, measure, and manage employee (organisational) commitment.

The purpose of the study was, firstly, to provide theoretical and empirical research on employee (organisational) commitment and, secondly, to determine whether the organisations directed action had had the desirable effect of changing employees attitudes towards human resources and management practices. The theoretical research focused on the concept of employee (organisational) commitment through researching antecedents and consequences of employee commitment. Emphasis was placed on attitudinal aspects and behavioural

influences and the effect of human resources strategies and management practices on employee (organisational) commitment. Through theoretical

research, it was argued that human resources strategies and management practices could influence employee commitment.

As empirical research, the change in employee attitudes towards human resources strategies and management practices between the year 2005 and the year 2006 was measured through the application of the assessment instrument, the Global People Commitment Survey. The study conducted focused on the comparison of less desirable commitment scores of employees attitudes towards human resources and management practices for the year 2005 and the year 2006.

131

Data was collected in the year 2005 and the same data again in the year 2006 from employees in a professional services organisation in the national audit service lines across all job levels in order to measure the impact of directed human resources and management practices. The organisation had directed specific

actions (see Section 4.8) towards the less desired commitment scores in the hope of changing employees attitudes and, ultimately, increasing employee

commitment after the first commitment survey in the year 2005.

6.2

FINDINGS OF THE STUDY

The Global People Commitment Survey was used, which had been developed jointly by Deloitte and Synovate Loyalty (then called Symmetrics Marketing) in 1999. In assessing the impact of directed actions, hypothetical variables

(commitment statements) of the less desirable commitment scores were assessed, and only variation was accounted for based on a comparison between the data for the year 2005 and the year 2006.

The p value was compared to the significance level () of 0.05 and where the p value was lower than 0.05 the result of the comparison between the year 2005 and the year 2006 was regarded as statistically significant (different).

The majority of the measurements reflected that the responses for the two years were the same (Data (2005) = Data (2006)). This signifies that the impact of the directed actions (see Section 4.8) was limited, if it had an impact at all. An impact on performance management (p = 0.0401) and compensation and benefits (p = 0.0223) was noted and the result of the comparison between the year 2005 and

132

the year 2006 was regarded as statistically significant (different). It is noticeable that these were the two areas where there was a definite strategy change (see Section 4.8); however, there was not enough evidence to prove that the rejected hypothesis was due to a change in human resources strategy or management practices.

The Neither category was exceptionally high, with an average of 33% for the year 2005 and 34.4% for the year 2006.

6.2.1 Shortcomings of the research Employee (organisational) commitment is multidimensional, and it is possible that certain organisational and individual variables are related to different forms of commitment. For the purpose of this study, it was necessary to limit the focus to the concept, antecedents, consequences, and strategies that influence employee (organisational) commitment. Buckingham and Coffman (1999:11-12) believe that talented employees may join an organisation because of its charismatic leaders, its generous benefits, and its work-class training programmes, but how long that employee stays and how productive he is while he is there is determined by his relationship with his immediate supervisor. Taking this statement into account, it is possible that human resources strategies may not weigh as much when it comes to employee commitment. There may be other factors that weigh even more and that deserve more attention.

The impact of human resources and management practices on employee commitment can only really be measured if the actual employee commitment

133

levels among a workforce are assessed. Due to the size of the actual employee commitment levels reports received from Synovate Loyalty for the year 2005 and the year 2006, this study was limited to focusing only on the less desirable scores that had a direct relation to human resources and management practices. It is arguable that valuable information may have been overlooked due to the limited focus; however, the purpose of this study was to measure the impact on employees attitudes towards human resources strategies and management practices (that ultimately contribute to employee commitment) due to directed actions and not to compare all variables of employee commitment levels.

Although there had been shifts for some of the statements from the year 2005 to the year 2006, it is uncertain whether these were due to human resources strategies and management practices, especially in the light of this being only the second year that the organisation under investigation had conducted the Global People Commitment Survey. There may be other causes for the shifts of some of the statements between the year 2005 and the year 2006 that can only be determined through further studies.

The research method, ex post facto, also has certain limitations, as it focuses, firstly, on the effect and then attempts to determine what caused the observed effect. As explained in an Internet article (Experimental, Quasi-Experimental, and Ex Post Facto (Causal-Comparative) Research, 2006), it is possible that the cause effect was not due to the directed actions, but due to other circumstances such as: History: another event occurs during the time of the experiment that might cause the difference;

134

Maturation: people naturally change and evolve over time. This may cause the difference in attitude; and Mortality: some people drop out during an experiment, leave the This may affect the

organisation, and are replaced with new entrants. outcome.

It may be premature to measure the impact of directed actions towards human resources strategies and management practices within a time period of less then 12 months. This may also have contributed to the increased Neither scores in most of the questions (see Section 6.2), as the Neither category percentages were exceptionally high in relation to the other category percentages. It is possible that employees had noticed change, however, and were uncertain what to think about this change, as it was still early days. This could also be an indication of a low employee engagement/involvement level. As explained in Section 5.6,

according to Herzberg theory of motivation, if the hygiene factors are absent, it could cause dissatisfaction. Proper attention to the hygiene factors will tend to prevent dissatisfaction, but does not, by itself, create a positive attitude or motivation to work. As mentioned, the opposite of dissatisfaction is not

satisfaction but, simply, no dissatisfaction (Mullins, 2005:485). It is possible that employees were not necessarily dissatisfied and, therefore, did not disagree with the statements; however, they were not satisfied either, and therefore, they did not reflect a positive attitude towards the variables/statements. This theory can only be determined by further studies.

135

Also noticeable is that 65.2% of respondents for the year 2005 and 60.1% for the year 2006 consisted of trainee accountants. This has a direct correlation to

tenure, where employees with less than three years (< 3 years) of service represented 70.4% in the year 2005 and 66.7% in the year 2006. Mortality, as previously explained, could be a possible limitation of this study. Trainee

accountants are only employed for a period of three years. During their three years of training, they are exposed to specific learning programmes and a prescribed performance management approach. Drastic changes were made to the trainee performance management framework in the middle of the year 2006 (see Section 4.8). Compensation and benefits for trainee accountants also differ from those for employees in the rest of the organisation. Trainee accountants attitudes toward human resources strategies and management practices are just as important as those of the rest of the organisations employees; however, it is possible that their needs are different from those of other employees within the organisation, and therefore, different actions may be needed to change their attitudes towards human resources and management practices. It may be useful to further explore the relationship between employee attitudes towards human resources strategies and management practices, taking into account different career stages and the difference in generations. It may be expected that the human resources practices associated with commitment during the early career stage when defined by employee age or contract of employment, such as learnerships, may vary from those associated with commitment when defined by organisational tenure. This relationship can only be determined by further studies.

136

The employee commitment measuring instrument (the Global People Commitment Survey) may also be a possible shortcoming in the measurement of employee commitment. There are other dimensions to employee commitment that cannot be assessed through the applied measuring instrument, such as the effect of individual behavioural influences on employee commitment, as discussed in Chapter 2. Buckingham and Coffman (1999:11-12) may be correct in stating that how long an employee stays with an organisation depends on the relationship with his/her immediate supervisor. Buckingham and Coffman (1999:197-203) explain that great managers take time to get to know their people. Buckingham and

Coffman (1999:15) recognise that everyone is different, and therefore, you cannot treat everyone the same. It is possible that human resources strategies and

management practices are based on a one size fits all approach, instead of recognising individual needs and differences.

6.2.2 Suggestions An understanding of the relationship between employees attitudes towards human resources strategies and management practices and employee commitment may be useful in determining whether directed actions towards improved human resources strategies and management practices may have had a desirable effect. The concept of employee (organisational) commitment and the intervening variables that channel the occurrence and strength of commitment were explored in this study.

For further studies, it is recommended to:

137

Consider the influences on, and effect of, the different types of employee commitment (affective commitment, continuance commitment, and normative commitment), as explained in Section 2.2; Investigate the weight of human resources strategies and management practices as an influence on employee commitment; Be aware of possible research limitations such as history, maturation, and mortality (as explained in Section 6.2) and their impact on the study; Wait at least 24 months before measuring change in employees attitudes. To expect a change in 12 months may be premature; and Take into account the needs of employees in different career stages and the needs of different generations and their effect on employee commitment. Employees in their earliest career stages may be more interested in learning and development than employees at the end of their career. Employees needs may differ and, therefore, also the organisations directed actions in the form of policies and procedures.

Human resources strategies and management practices should be directed towards high-priority areas for the highest impact, as discussed in Chapter 3. The comparison of priority grids is one of the most powerful criteria from which an organisation can draw comparisons. The less desired commitment index scores for the year 2006 (Table 5.5) suggest that the following dimensions need urgent attention: Compensation and benefits (21%) upward shift from 20% in the year 2005;

138

Keeping the best people within the organisation (23%), which is a clear indication that the employees perceive the organisation as having a retention problem downward shift from 24% in the year 2005; Recognising success (30%) upward shift from 29% in the year 2005; and a tie between Performance management (31%) upward shift from 27% in the year 2005; and Developing and communicating clear job expectations (31%) upward shift from 30% in the year 2005.

Overall, the percentages in the Neither category were exceptionally high. This is a concern, as it could skew the results, and employees seemed to be very comfortable not to express their opinions. It is also possible that employees were confused, whatever the reason. The organisation should try to bring this score down.

Should the high Neither category be addressed, it could shift the results drastically in the following year, which would affect the consistent baselines for monitoring progress. The high percentages in the Neither category confuse the issue in terms of whether it could lean to the positive side for the organisation or the negative side. Should the survey be positioned in such a way that the Neither category percentage comes down for the next study, it will affect the true reflection of the comparison results. It may result in vast shifts that are not due to changed attitudes towards human resources strategies and management practices, but rather forced decision-making. This is not the intent of Synovate Loyalty, as

139

explained by Pautz (2006:3), that allowing respondents to select Dont Know/Doesnt Apply results is a truer measure of each question, since those who feel they cannot judge a particular item are allowed to skip the question rather than feel forced to guess. However, as mentioned, the Dont know/Doesnt apply (Neither category) results were exceptionally high and should be a concern for the organisation.

A high percentage in the Neither category may also reflect disengagement. It is possible that the workforce was unsure what to think or had a loss of interest. Being unsure may also be due to current change initiatives. The only way of finding out the true meaning of the employee attitude and perception in this category is through further investigation.

The objective of this study was to measure the impact of directed actions, to change employees attitudes towards less desired commitment scores, and ultimately to increase employee commitment. According to Pautz (2006:14), it is a widely held belief that in order to maintain and improve outstanding employee engagement practices, organisations must always measure themselves against internal best practices.

Historical data can serve as one of the most valuable comparative tools when reporting survey data. To ensure sustained success, a work environment must conduct an assessment, establish baselines, and monitor progress. Historical

data is the key to establishing consistent baselines and monitoring progress. The

140

results from an organisations initial survey will establish a baseline from which the organisation can measure how (and in what areas) improvement has occurred.

It is suggested that another comparison be conducted in an added years time and that results be compared over a period of at least two years (24 months). It is also suggested that the study be broadened to measure the effect of individual behavioural influences on employee commitment.

Pautz (2006:9), for Synovate Loyalty, suggests that it is not recommended to compare results to other industries or organisations, as these results may be sample-biased, old data collected under different social-economic circumstances, item-level differences, scale differences, etc. Fundamentally, looking at any

industry benchmark database is not comparing apples to apples and, therefore, is of limited value. Internal benchmarking may be insightful, and comparison to highperforming functions or groups within a member organisation may prove useful in assessing best practices.

6.3

CONCLUSION

Through the theoretical research, it can be argued that employee (organisational) commitment affects organisational effectiveness for various reasons, and therefore, it can be assumed that executives are concerned with understanding the concept, influences, measurement, and management of employee

(organisational) commitment.

141

It has been argued in this study that employee (organisational) commitment can be influenced through human resources strategies and management practices. Changing employees attitudes towards human resources and management practices will result in changed behavioural tendencies toward various aspects of ones job, as attitudes are reflected in tendencies to respond, as previously discussed in this study.

Being aware of less desired commitment scores, organisations can attempt to change employees attitudes and, ultimately, to shape employee behaviour through directed actions in the form of customised policies, procedures, human resources strategies, and management practices in the hope of increasing employee commitment levels and, ultimately, organisational effectiveness.

This study improves our understanding of the connection between human resources strategies/management practices and employee (organisational) commitment. Organisations seeking to promote commitment might need to tailor human resources practices to suite employees needs. To attain success,

organisations must innovate in human resources management, notably by applying practices that favour the adoption of positive attitudes and behaviours toward the organisation.

The research objective of this study, to measure the impact of directed actions to change employees attitudes towards less desired commitment scores and, ultimately, to increase employee commitment, was achieved to a limited extent.

142

Knowing the true reason for the change (or where there was no change) is unknown.

143

BIBLIOGRAPHY
ADONISI, M. 2005. Antecedents of an organisational culture that fosters

corporate entrepreneurship. People Dynamics, August 2005. Vol. 23, No. 8. p. 6. ASHKANASY, N.M., WILDEROM, P.M. & PETERSON, M.F. 2000.

Organisational culture and climate. Sage Publications, Inc. AYERS, K. 2007. Why worker engagement is not enough. Manufactures

Monthly, February 2007. p. 16 (article). BABB, S. 2006. Diversity and learning. HR Future, November 2006. p. 21. BAKOS, B. 2007. Get the best fish in the talent pool. HR Future, June 2007. p. 32-33. BENNETT, K. & MINTY, H. 2005. The manager as a career coach. HR Future, June 2005. BOARDMAN, T. 2007. People are all youve got. HR Future, May 2007. p. 26. BOHRENSTEDT, G.W. & KNOKE, D. 1988. Statistics for social data analysis. 2nd Edition. Itasca, Illinois: F.E. Peacock Publishers, Inc. BOTHMA, R. 2007. Implementing HR solutions. HR Future, May 2007. p. 20. BOWDITCH, J.L. & BUONO, A.F. 2005. A primer on organizational behavior. John Wiley & Sons, Inc.

144

BRAMMER, S., MILLINGTON, A. & RAYTON, B. 2007. Do CSR policies affect employees commitment to their organisation? People Management, 9 February 2006. p. 52. Available from: Business Source Corporate, Ipswich, MA. BRENNAN, M. 2004. Flying in formation: The organisational commitment of training and development. Chief Learning Officer, March 2004. Vol. 3, Issue 3. p. 50-52. Available from: Business Source Corporate, Ipswich, MA. BUCHANAN, D. & HUCZYNSKI, A. introductory text. Prentice Hall. BUCKINGHAM, M. & COFFMAN, C. 1999. First, break all the rules. Simon & Schuster UK Ltd. BURTON, L. 2001. 13-14. BUSSIN, M. 2007. Ticket into the remuneration stadium. HR Future, June 2007. p. 16-17. BYWATER, J. 2005. Objective assessment: a 50/50 win for candidates and recruiters. SHL. People Dynamics, June 2005. Vol. 23, No. 6. p. 27. CABOT, S.J. & STEINER, J.M. 2007. Make your company a great place to work. Leadership Excellence, March 2007. Vol. 24, Issue 3. p. 19. COETZEE, M. 2006. The behaviour of a person of influence. HR Future, Managing motivation. People Dynamics, August 2001. p. 2004. Organisational behaviour an

November 2006. p. 42-43.

145

COMPENSATION & BENEFITS FOR LAW OFFICES. 2006. Establishing a link between HR management and organisation profitability. Compensation & Benefits for Law Offices, January 2006. Vol. 6, Issue 1. p. 2-4. CONRADIE, D. 2007. What makes employees tick? HR Future, June 2007. p. 37. CONWAY, E. 2004. Relating career stage to attitudes towards HR practices and commitment: Evidence of interaction effects? European Journal of Work &

Organisational Psychology, December 2004. Vol. 13, Issue 4. p. 417-446. COOPER, D.R. & SCHINDLER, P.S. 2001. Business research methods. 7th edition. Boston: McGraw-Hill. CROSBY, L.A. 2000. A managerial model of employee commitment. Symmetrics Marketing Corporation. DAVID, F.R. 2001. Strategic management concepts. 8th edition. Prentice-Hall, Inc., New Jersey. DE BEER, E. 2007. Immature leaders go off like milk. People Dynamics, June 2007. Vol. 25, No. 6. p. 12. DE CHALAIN, M. 2006. Change management in remuneration interventions.

People Dynamics, January 2006. Vol. 24, No. 1. p. 10. DOOLEY, D. 1990. Social research methods. 2nd Edition. Englewood Cliffs, New Jersey: Prentice Hall, Inc.

146

DORENBOSCH, L., DE REUVER, R. & SANDERS, K. 2006. Getting the HR message across: The linkage between line, HR consensus and commitment

strength among hospital employees. Management Revue, 2006. Vol. 17, Issue 3. p. 274-291. DUBOIS, D.D. 2005. What are competencies and why are they important.

People Dynamics, July 2005. Vol. 23, No. 7. p. 3. DUBRIN, A.J. South-Western. DUNKEL, L. 2007. The soft stuff is the hard stuff. Leadership Excellence, July 2007. Vol. 24, Issue 7. p. 14-15. ERASMUS, L. 2007. John Smit on leadership. HR Future, June 2007. p. 28-29. Experimental, Quasi-Experimental, and Ex Post Facto (Causal-Comparative) Research report. 2006. [Online]. Available from: 2005. Fundamentals of organisational behaviour. Thomson,

http://www.cals.ncsu.edu/agexed/aee578/experiments.ppt. 12/11/2007]

[Accessed

FIRER, S. 2002. The right staff. People Dynamics, February 2002. p. 28-31. FORMAN, D.C. 2005. Principles of human capital management. Human Capital Institute. FRIEDMAN, M. 2005. Resilience for performance. People Dynamics, September 2005. Vol. 23, No. 9. p. 15.

147

GIBSON, J.L., IVANCEVICH, J.M. & DONNELLY, J.H., Jr. 2000. Organisations behavior structure processes. Irwin McGraw-Hill. GIBSON, J.L., IVANCEVICH, J.M., DONNELLY, J.H., Jr. & KONOPASKE, R. 2006. Organisations behavior structure processes. Irwin McGraw-Hill. GREENBERG, J. & BARON, R. 2003. Behaviour in organisations. Prentice-Hall. HAMLYN, J. 2005. Less management, more leadership needed. HR Future, June 2005. p. 43. HARRAWAY, R. 2006. Beyond pay retention. HR Future, November 2006. p. 14-15. HATTINGH, B. 2007. TRM the new frontier. HR Future, August 2007. p. 28-29. HAY GROUP INC. 2006. Why productive workers leave. People Dynamics, February 2006. Vol. 24, No. 2. p. 22. HELLRIEGEL, D. & SLOCUM, J.W., Jr. Thomson, South-Western. HORNBY, A.S. 2005. Oxford advance learners dictionary of current English. Oxford University Press. IVANCEVICH, J.M., KONOPASKE, R. & MATTESON, M.T. 2005. Organisational behaviour and management. McGraw-Hill, Irwin. KELLY, M. 2007. 27. The road to high performance. HR Future, October 2007. p. 2004. Organisational behaviour.

148

KERRIGAN, M. 2005. People centred strategies. HR Future, March 2005. p. 19. KHESWA, P.T. 2006. Starring role for T&D in staff retention. HR Future, August 2006. p. 13. KINNEAR, L. & SUTHERLAND, M. 2001. Dont let your competitive advantage wait. People Dynamics, February 2001. p. 16-18. KREITNER, R. & KINICKI, A. 2001. Organizational behavior. 5th edition. Irwin McGraw-Hill. KRISTENSEN, K., JUHL, H.J., ESKILDSEN, J., NIELSEN, J., FREDERIKSEN, N. & BISGAARD, C. 2006. Determinants of absenteeism in a large Danish bank. International Journal of Human Resource Management, September 2006. Vol. 17, Issue 9. p. 1645-1658. LANDMAN, W.A. Serva. LEATHER, D. 2005. Happy employees, happy customers. People Dynamics, April 2005. Vol. 23, No. 4. p. 21. LILFORD, N. 2005. High cost of absenteeism bites deep. People Dynamics, September 2005. Vol. 23, No. 9. p. 4. LUTHANS, F. 2005. Organisational behaviour. McGraw-Hill, Irwin. MAHOMEDY, Y. 2006. Workers going missing. HR Future, November 2006. p. 30. 1988. Navorsingsmetodologiese grondbegrippe. Pretoria:

149

MANION, J.

2004.

Strengthening organisational commitment. Vol. 23, Issue 2. p. 167-176.

Health Care

Manager, April June 2004.

Available from:

Business Source Corporate, Ipswich, MA. MARTINS, N. 2005. Organisational survey trends. HR Future, October 2005. p. 34. MENGEL, D. 2001. Top ten ways to retain high performance. People Dynamics, October/November 2001. p. 32-33. MERISALO, L. 2001. Editors corner. Health care registration: The newsletter for health care registration professionals, October 2001. Vol. 11, Issue 1. p. 2. MOHONATHAN, S. 2007. True magic of technology. HR Future, October 2007. p. 22. MSOMI, D. 2005. So what is HR? People Dynamics, March 2005. Vol. 23, No. 5. p. 26. MULLINS, L.J. 2005. Management and organizational behaviour. Prentice Hall. NAIDOO, A. 2007. Integrated management career development model. HR

Future, May 2007. p. 46. NCONGWANE, S. 2007. Talent management prism of the workplace. HR

Future, April, 2007. p. 34-37. NELSON, D.L. & QUICK, J.C. 2005. Understanding organizational behaviour. 2nd edition. Thomson South-Western.

150

PAULSON, R. 2007. Reduce absenteeism, increase productivity. HR Future, June 2007. p. 47. PAUTZ, M. 2006. Global people commitment survey: Frequently asked

questions. Synovate Loyalty, September 2006. PERSONNEL TODAY. 2006. The impact of ethical employment policies remains limited. Personnel Today. Business Source Corporate. Reed Business

Information UK, Ltd. PFEIFFER, J.B. The 1999 annual: Volume 2, Consulting, (The thirty-third

annual). Jossey-Bass Pfeiffer, San Francisco. PIENAAR, C. 2007. What makes an organisation sick? People Dynamics, June 2007. Vol. 25, No. 6. p. 12. POTGIETER, L. 2006. Finding the 100% package. HR Future, November 2006. p. 36-37. RABSON, M. 2007. Shared values. People Dynamics, June 2007. Vol. 25, No. 6. p. 12. RAYTON, B.A. 2006. Examining the interconnection of job satisfaction and an application of the bivariate probit model.

organizational commitment:

International Journal of Human Resource Management, January 2006. Vol. 17, Issue 1. p.139. RICE, C. 2007. Four priorities. Leadership Excellence, March 2007. Vol. 24, Issue 3. p. 15-15, 1p.

151

ROBBINS, S.P.

1986.

Organisational behavior concepts, controversies and

applications. 3rd edition. Prentice-Hall, Inc. New Jersey. ROBBINS, S.P. 2001. Organisational behavior. Prentice-Hall, Inc. New Jersey. ROBBINS, S.P. 2005. Organisational behaviour. 11th edition. Prentice-Hall, Inc. New Jersey. ROBBINS, S.P. & COULTER, M. 1999. Management. Prentice Hall International (UK). ROBERTSON, P.J., WING-HUNG LO, C. & TANG, S. 2003. Antecedents of commitment among public employees in China. Public Management Research Conference, Georgetown University. ROSE-INNES, J.C. 2004. An organisation behaviour model to determine the relationship between ethical climate, hope and self-efficiency. Doctoral Thesis. University of Pretoria: Pretoria. SAIYADAIN, M.S. 2003. Organisation behaviour. Tata McGraw-Hill, New Delhi. SHAMRAO, A.D. 2005. Shaping a safety culture. People Dynamics, April 2005. Vol. 23, No. 4. p. 6. SHAVELSON, R.J. 1981. Statistical reasoning for the behavioural sciences. Unpublished

Toronto: Allyn & Bacon, Inc. SIMS, B. 2007. Recipe for employee safety behaviour change. HR Future,

October 2007. p. 12-14.

152

SMANJAK, P. 2007. When people dont pitch up. HR Future, April 2007. p. 19. SULCAS, P. 2007. Are your practices producing results? People Dynamics, June 2007. Vol. 25, No. 6. p. 12. SWANEPOEL, B., ERASMUS, B., VAN WYK, M. & SCHENK, H. 2003. South African human resource management. Juta. SYMMETRICS MARKETING CORPORATION. 1999. A Deloitte & Touche Symmetrics

consultants guide to employee commitment plus. Marketing Corporation.

July 1999.

SYNOVATE LOYALTY. 2006. A model of employee commitment. Synovate Loyalty, 2006. TAYLOR, G. 2005. To act or not to act. People Dynamics, April 2005. Vol. 23, No. 4. p. 28-29. TEKE, M. 2005. Employee value proposition. HR Future, May 2005. p. 36. TRUTER, L. 2007. Disability competent organisations. HR Future, June 2007. p. 18-19. VAN DER MERWE, A. 2006. Spirit @ work. HR Future, August 2006. p. 32. VAN ROOYEN, J. 2006. Facing barriers beyond conscious awareness. People Dynamics, January 2006. Vol. 24, No. 1. p. 4-5. WANDRAG, C. 2007. Drivers of perceptions. HR Future, June 2007. p. 34.

153

WEGGE, J., SCHMIDT, K.H., PARKES, C. & VAN DICK, R.

2007.

Job

satisfaction and job involvement as interactive predictors of absenteeism in a public organisation. Journal of Occupational & Organisational Psychology, March 2007. Vol. 80, Issue 1. p. 77-89. WEGNER, T. 2000. Applied business statistics. Juta & Co. Ltd. WESTERMAN, J. & SIMMONS, B. 2007. The effects of work environment on the personality-performance relationship: an exploratory study. Journal of Managerial Issues, Summer 2007. Vol. 19, Issue 2. p. 288-305, 18p. WILLEMSE, A. 2007. Managing your golden egg talent. HR Future, May 2007. p. 17. WOOD, J., CHAPMAN, J., FROMHOLTZ, M., MORRISON, V., WALLACE, J., ZEFFANE, SCHERMERHORN, HUNT & OSBORN. 2004. Organisational

behaviour a global perspective. 3rd edition. John Wiley & Sons Australia, Ltd.

154

ANNEXURE A

Global People Commitment Survey

Survey Introduction

Thank you for participating in the Company X Global People Commitment Survey.

To ensure confidentiality, Symmetrics, an independent research organisation, will manage the survey and tabulate the results. Although the results will be reported to Company X, no one at the organisation will ever be able to view or receive your individual responses. In fact, responses will not be reported in the results in groups of fewer than ten people. For your convenience, this survey should take approximately 15-20 minutes to complete.

Please read or print the following instructions before proceeding with the survey.

Please respond to all statements by marking the box next to the response that matches your opinion. If you do not have enough information, or feel a statement doesnt apply to you, please check Dont Know / Doesnt Apply.

After you have responded to each statement, please click the >> button located at the bottom of each page to advance. If you are unable to move to the next page, you may not have responded to each statement. Check for any error messages at the top of the page to see which statements you may have missed.

If you would like to go back and review or change any of your responses, please use the << button located at the bottom of each page.

155

If you need help at any time during the survey, please click on the Questions link located at the bottom of each page. This will open a new window and will not interrupt the progress of your survey. You could also contact Symmetrics or email your question to companyxsurvey@symmetrics.com.

Please use the << and >> buttons at the bottom of the screen to move between pages. DO NOT use the buttons on your browser. If you accidentally use your browser buttons, click the refresh button at the top of your browser to continue where you left off.

In completing the survey, please keep in mind that we are interested in feedback based on your personal experiences and feelings as they apply to your relationship with the organisation. Whats most important is to share your opinion on each topic.

Press the >> button below to begin the survey.

NOTE on Company X Global Standard: individual organisations can refer to themselves as the organisation, your organisation, our organisation, etc. The point is that the questions should reflect that the respondent works in a particular organisation, not for some fictitious single entity named Company X. The exception is sections A and B, where reference is made to Company X.

Please rate the organisation in the following areas. For each area, you will first evaluate the organisations performance overall and then be asked more detailed questions about the area. For all of these questions, indicate whether performance is excellent, very good, good, fair, or poor. If you do not have enough information, or feel a question doesnt apply to you, please select Dont Know/Doesnt Apply.

156

SECTION A: General Feelings about Company

Neither Agree Nor Disagree Strongly Disagree

X
Please indicate the extent to which you agree or disagree with
Strongly Agree

each of the following statements.

A1) I feel a strong sense of belonging to Company X A2) I am willing to change how I do my job if this will help Company X A3) Too much of my life would be disrupted if I decided I wanted to

5 5 5

4 4 4

3 3 3

2 2 2

1 1 1

leave Company X now A4) The reason I prefer Company X to others is because of what it 5 stands for, that is, its values and beliefs A5) When confronted with a problem or obstacle at work, my 5 response is theres got to be a way A6) I would recommend Company X to my friends as a place to work A7) There are many positions I could consider in the local job market A8) For me, this is the best of all possible organisations for which to 5 work A9) I would go above and beyond what is normally expected to solve 5 a problem A10) I would recommend Company X to potential clients A11) I plan to work for Company X for many more years A12) I am proud to tell others that I am part of Company X A13) Im always focused on what needs to be done and not just what 5 Ive been assigned 4 3 2 1 9 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 9 9 9 4 3 2 1 9 4 3 2 1 9 5 5 4 4 3 3 2 2 1 1 9 9 4 3 2 1 9 4 3 2 1 9

157

Dont Know/Doesnt Apply

Disagree

Agree

9 9 9

SECTION B: Images of Company X

Please indicate the extent to which you agree or disagree with each
Strongly Agree Dont Know/Doesnt Strongly Disagree Neither Agree Nor

Disagree

B1) Company X appreciates and values its people B2) Company X responds quickly to competitive opportunities B3) Company X strives to maintain an outstanding reputation of

5 5 5

4 4 4 4 4 4

3 3 3 3 3 3

2 2 2 2 2 2

1 1 1 1 1 1

9 9 9 9 9 9

community involvement B4) Company X is financially success-driven B5) Company X is client-focused B6) Company X believes that its success depends on always acting 5 with integrity B7) Company X responds quickly to challenges impacting the 5 professional services industry 4 3 2 1 9 5 5

C1. Firm Leadership

(By organisational leadership, we mean the partners, directors, the organisations
Excellent

policy board, board of directors, etc.). We will ask you questions about your supervisor/manager later on in the survey.

C1) Overall rating of firm leadership: C1a) Clearly explaining the thinking behind the organisations

5 5

4 4 4 4

3 3 3 3

2 2 2 2

1 1 1 1

strategy C1b) Providing the resources you need to get the job done right C1c) Empowering other people in the organisation to make and 5 carry out decisions 9 5 9

158

Dont Know/Doesnt Apply

Very Good

Good

Poor

Fair

9 9

Apply

of the following statements.

Disagree

Agree

C1d) Promoting teamwork and integration C1e) Keeping commitments to our people C1f) Acting as a team C1g) Managing crises effectively C1h) Setting an appropriate tone at the top regarding

5 5 5 5 5

4 4 4 4 4

3 3 3 3 3

2 2 2 2 2

1 1 1 1 1

9 9 9 9 9

expectations for behaviour concerning ethics and integrity

C2. Management of Change

Very Good

C2) Overall rating of the organisations management of change: C2a) Planning before making important changes C2f) Acting swiftly to implement change C2b) Being flexible and able to change C2c) Giving you reasonable notice of changes that may affect you C2d) Giving you an opportunity to influence how significant

5 5 5 5 5 5

4 4 4 4 4 4

3 3 3 3 3 3

2 2 2 2 2 2

1 1 1 1 1 1

changes are implemented when they occur in your practice

C3. Firm Communications

Very Good Excellent

C3) Overall rating of the organisations communication with its 5 people: 4 3 2 1 9

159

Dont Know/Doesnt Apply

Good

Poor

Fair

Dont Know/Doesnt Apply

Excellent

Good

Poor

Fair

9 9 9 9 9 9

C3a) Openly sharing information about the organisation with you C3b) Explaining how the organisations vision, goals, and

5 5

4 4

3 3

2 2

1 1

9 9

strategies apply to your work C3c) Informing you about developments affecting the organisation 5 in a timely manner C3d) Encouraging people at your level/position to raise ideas and 5 issues C3e) Listening to people at your level/position C3f) Communicating to its people about new services the 5 organisation is offering 4 3 2 1 9 5 4 3 2 1 9 4 3 2 1 9 4 3 2 1 9

Good

C4) Overall rating of your immediate supervisor/manager(s): C4a) Involving you in decisions that affect you C4b) Making good decisions in a timely manner C4c) Coaching you on how to increase your contribution C4e) Expressing appreciation for the work you do C4f) Fostering a positive work environment C4g) Acting to support the organisations culture and customs

5 5 5 5 5 5 5

4 4 4 4 4 4 4

3 3 3 3 3 3 3

2 2 2 2 2 2 2

Poor

Fair

(the person or persons you report to directly)

1 1 1 1 1 1 1

9 9 9 9 9 9 9

(e.g., policy, programmes, and standards)

160

Doesnt Apply

Dont Know/

C4. Your Immediate Supervisor/Manager(s)

Very Good Excellent

C5. Developing Our People

Dont Know/Doesnt Apply

Very Good

Excellent

Good

C5) Overall rating of the organisation in developing our people: C5a) Having an understanding of your needs, expectations, and

5 5

4 4 4 4

3 3 3 3

2 2 2 2

Poor

Fair

1 1 1 1

9 9 9 9

career objectives C5b) Establishing a development plan to address your skills gaps C5c) Helping you understand the competencies required for 5 success C5d) Providing development opportunities that enhance your 5 professional and career growth C5e) Providing time for development and training within your daily 5 activities C5f) Effectively integrating new hires into the organisation 5 4 3 2 1 9 4 3 2 1 9 4 3 2 1 9 5

C6. Learning and Education

Dont Know/Doesnt Apply

Very Good

Excellent

Good

C6) Overall rating of the learning and education the organisation 5 provides: C6a) Providing education and training related to your role 5 4 3 2 1 9 4 3 2 1 9

161

Poor

Fair

C6b) Offering e-learning programmes (or distance learning or alternative learning tools/programmes) to support your individual learning objectives C6c) Sharing knowledge and learning across the organisation C6d) Providing education and training programmes that improve 5 your performance 4 3 2 1 9 5 4 3 2 1 9 5 4 3 2 1 9

C7. Performance Management

Dont Know/Doesnt Apply

Very Good

Excellent

Good

C7) Overall rating of the performance management process: C7a) Giving you a clear understanding of what is expected of you C7b) Providing you with the right balance of constructive criticism

5 5 5

4 4 4 4 4

3 3 3 3 3

2 2 2 2 2

Poor

Fair

1 1 1 1 1

9 9 9 9 9

and positive feedback C7c) Providing you with feedback that is timely C7d) Differentiating between superior, average, and poor 5 performance when doing evaluations C7e) Evaluating and reviewing performance in ways that help you 5 improve C7f) Making promotions on the basis of skills/performance 5 4 3 2 1 9 4 3 2 1 9 5

162

C8) Overall rating of the organisation in recognising success: C8a) Recognising performance in ways that are meaningful to

5 5

4 4

3 3

2 2

1 1

you C8b) Recognising the contributions of its people regularly and 5 consistently C8c) Recognising superior performance with desirable 5 assignments and opportunities C8f) Finding creative and flexible non-monetary ways to 5 recognise performance 4 3 2 1 9 4 3 2 1 9 4 3 2 1 9

C9. Compensation and Benefits

Dont Know/Doesnt Apply

Very Good

Excellent

Good

C9) Overall rating of compensation and benefits: C9a) Providing compensation that reflects the value of your

5 5

4 4

3 3

2 2

Poor

Fair

1 1

performance C9b) Offering competitive compensation levels within the 5 marketplace C9c) Having a compensation plan that differentiates between 5 levels of performance 4 3 2 1 9 4 3 2 1 9

163

Dont Know/Doesnt Apply

C8. Recognising Success

Very Good

Excellent

Good

Poor

Fair

9 9

9 9

C9d) Offering you a competitive benefits plan C9e) Explaining how your compensation is determined

5 5

4 4

3 3

2 2

1 1

9 9

C10) Overall rating of the organisations respect and support of 5 work-life balance: C10a) Working with you to allow adequate time for your personal 5 and family life C10b) Considering your need to balance multiple commitments (work, family, education, community, etc.) when making decisions that affect you C10c) Offering formal programmes for flexible work arrangements 5 (e.g., flex time, job sharing, part-time, working at home, etc.) C10d) Enabling you to take advantage of flexible work 5 arrangements 4 3 2 1 9 4 3 2 1 9 5 4 3 2 1 9 4 3 2 1 9 4 3 2 1 9

C11. Client Relationship Management and Client Service Quality

(helping our clients excel)
Very Good Excellent Good Poor Fair Dont Know/Doesnt Apply

C11) Overall rating of the organisation in terms of managing 5 relationships with clients: 4 3 2 1 9

164

Doesnt Apply

Dont Know/

C10. Work-Life Balance

Very Good Excellent Good Poor Fair

C11j) Overall rating of the organisation in terms of quality of 5 service to clients: C11i) Offering a range of services that fulfil client needs C11a) Responding quickly to changing client needs C11b) Creating teams with the right mix of talents to work with 5 clients C11c) Giving you client- and job-specific information you need to 5 meet client needs C11e) Providing you with a clear definition of what high-quality 5 service is C11f) Communicating with clients on changes in the organisation 5 that are relevant to the client relationship C11d) Providing a client feedback process that lets you know 5 whether clients are satisfied C11d1) Supplying innovative tools and technologies that enable 5 you to provide high-quality service 4 3 2 1 9 4 3 2 1 9 4 3 2 1 9 4 3 2 1 9 4 3 2 1 9 4 3 2 1 9 5 5 4 4 3 3 2 2 1 1 9 9 4 3 2 1 9

C12. Hiring and Staffing

Dont Know/Doesnt Very Good

Excellent

C12) Overall rating of the organisation in terms of hiring and 5 staffing: C12a) Being able to attract good people C12b) Placing the right people in the right jobs C12c) Hiring new people into the practice that have the capacity 5 to grow and develop within the organisation 4 3 2 1 9 5 5 4 4 3 3 2 2 1 1 9 9 4 3 2 1 9

165

Apply

Good

Poor

Fair

C12d) Keeping the best people with the organisation C12e) Providing appropriate levels of staffing for your

5 5

4 4 4

3 3 3

2 2 2

1 1 1

9 9 9

assignments C12f) Developing and communicating clear job expectations 5

C13. Multiculturalism and Inclusion

Dont Know/Doesnt Apply

Supporting differences based on, but not limited to, the following:
Very Good

race, gender, age, sexual orientation, ethnicity, mental/physical ability, national origin, thinking style, and function
C13) Overall rating of the organisation in terms of supporting 5 diversity as defined above: C13a) Treating all of our people with respect C13b) Seeking out and utilising the different backgrounds of all 5 people C13c) Understanding diverse perspectives in developing business 5 solutions C13d) Creating an environment that demonstrates support for 5 people of different backgrounds and cultures C13g.1) Creating an environment that demonstrates support for 5 women 4
Excellent

Good

4 3 4

3 2 3

2 1 2

Poor

Fair

1 9 1

9 9 9

166

ANNEXURE B Comparative statistics graphs

Performance Management: Cape Town

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 13.40% 30.10% 43.90% 39.80% 42.70% Dis agree Neither Agree 30.10%

FIGURE 1: Overall rating of the performance management process by Cape Town The criteria group Cape Town indicated a more positive attitude towards performance management in the year 2006. The Disagree to Neither category decreased between the year 2005 and the year 2006.

Performance Management: KZN

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 23.50% 32.70% 32.70% 43.60% 43.90% Disagree Neither Agree 23.70%

167

FIGURE 2: Overall rating of the performance management process by KwaZuluNatal

The criteria group KwaZulu-Natal indicated a more positive attitude towards performance management in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. increased. However, the category Neither

Performance Management: Trainee

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 25.00% 29.30% 34.00% 44.60% 41.00% Disagree Neither Agree 26.10%

FIGURE 3: Overall rating of the performance management process by trainees

The criteria group trainees indicated a more positive attitude towards performance management in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. However, the category Neither increased.

168

Performance Management: Female

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 26.40% 32.00% 35.20% 41.00% Disagree Neither Agree 27.00% 38.50%

FIGURE 4: Overall rating of the performance management process by females

The criteria group female indicated a more positive attitude towards performance management in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. However, the category Neither increased.

Performance Management: African

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 22.50% 34.50% 26.20% 39.80% 51.20% Disagree Neither Agree 25.70%

FIGURE 5: Overall rating of the performance management process by Africans

169

The criteria group African indicated a more positive attitude towards performance management in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. However, the category Neither increased.

Performance Management: Coloureds / Indians

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 25.20% 33.80% 26.20% 38.30% 48.60% Disagree Neither Agree 27.90%

FIGURE 6: Overall rating of the performance management process by Coloureds/ Indians

The criteria group Coloureds/Indians indicated a more positive attitude towards performance management in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. increased. However, the category Neither

170

Performance Management: Tenure < 3 Years

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 25.10% 31.50% 34.90% 43.70% 24.80% 40.00% Disagree Neither Agree

FIGURE 7: Overall rating of the performance management process by tenure < 3 years

The criteria group tenure < 3 years indicated a more positive attitude towards performance management in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. increased. However, the category Neither

Recognizing Success: Africans

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 31.70% 29.70% 27.80% 45.10% 25.20% 40.50% Disagree Neither Agree

171

FIGURE 8: Overall rating of the organisation in recognising success by Africans

The criteria group Africans indicated a more negative attitude towards recognising success in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. However, the category Neither increased.

Recognizing Success: Coloureds / Indians

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 35.10% 21.00% 36.20% 33.80% 42.90% Disagree Neither Agree 31.10%

FIGURE 9: Overall rating of the organisation in recognising success by Coloureds/Indians

The criteria group Coloureds/Indians indicated a more positive attitude towards recognising success in the year 2006. The Disagree and Neither categories decreased between the year 2005 and the year 2006.

172

Compensation and Benefits: JHB

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 18.80% 22.90% 26.10% 34.90% 42.20% 55.10% Disagree Neither Agree

FIGURE 5.10: Overall rating of compensation and benefits by Johannesburg

The criteria group Johannesburg indicated a more positive attitude towards compensation and benefits in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. increased. However, the category Neither

Compensation and Benefits: Trainee

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 13.10% 13.00% 26.90% 41.00% 46.00% 60.00% Disagree Neither Agree

FIGURE 5.11: Overall rating of compensation and benefits by trainees

173

The criteria group trainee remained stable in the category Agree towards compensation and benefits in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. increased. However, the category Neither

Compensation and Benefits: Female

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 18.20% 16.10% 30.90% 44.00% 50.90% 39.90% Disagree Neither Agree

FIGURE 5.12: Overall rating of compensation and benefits by females

The criteria group female indicated a more negative attitude towards compensation and benefits in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. increased. However, the category Neither

174

Compensation and Benefits: African

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 17.90% 11.60% 16.70% 35.70% 64.40% 52.70% Disagree Neither Agree

FIGURE 5.13: Overall rating of compensation and benefits by Africans The criteria group African indicated a more negative attitude towards compensation and benefits in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. increased. However, the category Neither

Compensation and Benefits: Coloureds / Indians

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 16.20% 24.80% 20.40% 36.80% 42.80% 59.00% Disagree Neither Agree

FIGURE 5.14: Overall rating of compensation and benefits by Coloureds/Indians

175

The criteria group Coloureds/Indians indicated a more positive attitude towards compensation and benefits in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. increased. However, the category Neither

Compensation and Benefits: Tenure < 3 years

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 14.00% 14.00% 28.00% 40.40% 45.60% 58.00% Disagree Neither Agree

FIGURE 5.15: Overall rating of compensation and benefits for tenure < 3 years The criteria group tenure > 3 years remained stable in the category Agree towards compensation and benefits in the year 2006. The Disagree category decreased between the year 2005 and the year 2006. However, the category Neither increased. Note must be taken that some of the cells had zero expected counts for some of the statements and that the chi-square test might not be valid in those cases.

176